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The following financial information is available on Husky Enterprises: Current per share market price: $10.25 Current (t=0) per share dividend: $1.00 Expected long-term growth rate:
The following financial information is available on Husky Enterprises: Current per share market price: $10.25 Current (t=0) per share dividend: $1.00 Expected long-term growth rate: 10.5% Husky can issue new common stock to net the company $6.50 per share. Determine the cost of external equity capital using the dividend capitalization model approach.
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