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The future earnings, dividends, and common stock price of Callahan Tech Inc. are expected to grow 6% per year. Callahans common stock currently sells for
The future earnings, dividends, and common stock price of Callahan Tech Inc. are expected to grow 6% per year. Callahans common stock currently sells for $22/share, its last dividend was $2; and it will pay a $2.12 dividend at the end of the current year (same as early next year this is your D1). Use the dividend approach, what is its cost of common equity?
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