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Suppose that your company is expected to pay a dividend of $1.50 per share next year. There has been a steady growth in dividends of

Suppose that your company is expected to pay a dividend of $1.50 per share next year. There

has been a steady growth in dividends of 5.1% per year and the market expects that to

continue. The current price is $25. What is the cost of equi

ty?

5.16%

6.00%

18.05%

19.55%

none of the above

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