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XYZ Co. is currently being traded at $5 per share and just announced a dividend of $0.50 per share, which will be paid out ext

XYZ Co. is currently being traded at $5 per share and just announced a dividend of $0.50 per share, which will be paid out ext year. Using historical information, an analyst estimate the dividend growth rate of XYZ Co. to be 2%. What is the cost of equity?

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