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Stock A has just paid a dividend (Do) $2.50/sh.are. The dividends are expected grow at a constant rate of 6% per year for ever. If
Stock A has just paid a dividend (Do) $2.50/sh.are. The dividends are expected grow at a constant rate of 6% per year for ever. If the current price of the stock is $36/share; calculate the cost of common equity for the firm using the dividend growth model.
Question 32 options:
| 12.94% |
| 6.94% |
| 13.36% |
| 7.36% |
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