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Tax rate = 20%. The stock of ASUS Corp. sells for $15 a share. The stock just paid a pershare dividend of $1.5 a share.

Tax rate = 20%. The stock of ASUS Corp. sells for $15 a share. The stock just paid a pershare dividend of $1.5 a share. The dividend is expected to grow at a constant rate of 10% a year. Calculate the cost of (common) equity and the actual cost of (common) equity. Show the time line.

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