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The common stock of Schaumburg Corporation currently sells for $31.40 per share. Securities analysts at Shorewood Investments expect the dividend for the coming year (D1)
The common stock of Schaumburg Corporation currently sells for $31.40 per share. Securities analysts at Shorewood Investments expect the dividend for the coming year (D1) to be $1.88 per share, and they expect future dividends to grow in a manner approxiating a 2.4% constant annual rate. According to the constant dividend growth (also called discounted cash flow) technique, what is the firm's annual percentage cost of common equity (ke) financing?
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