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Question 7 Problem 9-5 Cost of Equity: Dividend Growth Summerdahl Resort's common stock is currently trading at $29.00 a share. The stock is expected to

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Question 7

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Problem 9-5 Cost of Equity: Dividend Growth Summerdahl Resort's common stock is currently trading at $29.00 a share. The stock is expected to pay a dividend of $2.50 a share at the end of the year (D1 = $2.50), and the dividend is expected to grow at a constant rate of 7% a year. What is the cost of common equity? Round your answer to two decimal places. %

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