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The Lo Tech Co. just issued a dividend of $2.50 per share on its common stock. The company is expected to maintain a constant 5

The Lo Tech Co. just issued a dividend of $2.50 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely.

Required: If the stock sells for $43.30 a share, what is the company's cost of equity?

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