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Ross's common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock, and investors

Ross's common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10% per year. What's the firm's cost of common stock using DCF approach?

9.5%

10.0%

15.5%

16.5%

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