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The Down and Out Co . just issued a dividend of $ 2 . 1 1 per share on its common stock. The company is

The Down and Out Co. just issued a dividend of $2.11 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely. If the stock sells for $35 a share, what is the company's cost of equity? (Do not round your intermediate calculations.)

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