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The Lo Tech Co. just issued a dividend of $2.70 per share on its common stock. The company is expected to maintain a constant 8

The Lo Tech Co. just issued a dividend of $2.70 per share on its common stock. The company is expected to maintain a constant 8 percent growth rate in its dividends indefinitely.

Required:

If the stock sells for $28.00 a share, what is the companys cost of equity?

	6.20%
	18.41%
	10.41%
	10.70%
	17.64%

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