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The Down and Out Co. just issued a dividend of $2.66 per share on its common stock. The company is expected to maintain a constant
The Down and Out Co. just issued a dividend of $2.66 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 $40 a share, what is the company's cost of equity?
14.12%
7.29%
13.41%
14.82%
13.65%
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