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The newly issued and outstanding common shares paid a dividend of $ 2.50 last year. The dividend is expected to grow at a rate of
The newly issued and outstanding common shares paid a dividend of $ 2.50 last year. The dividend is expected to grow at a rate of 8%. The stock is currently selling on the market for $ 60 with a float cost of $ 6 per share. What is the cost of common shares?
A. 12.6%
B. 13%
C. 7.8%
D. 7%
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