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Using the dividend discount model, the cost of equity capital for a company which will pay a dividend of $2 next year, has a payout
Using the dividend discount model, the cost of equity capital for a company which will pay a dividend of $2 next year, has a payout ratio of 35%, a return on equity of 15%, and it current stock price of $40, is
a.12.25
b. less than 10.00%
c. 14.75%
d. 10.51%
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