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The Drogon Co. just issued a dividend of $2.36 per share on its common stock. The company is expected to maintain a constant 4 percent

The Drogon Co. just issued a dividend of $2.36 per share on its common stock. The company is expected to maintain a constant 4 percent growth rate in its dividends indefinitely. If the stock sells for $35 a share, what is the company's cost of equity?

  • 10.46%

  • 11.01%

  • 7.13%

  • 10.74%

  • 11.56%

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