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XYZ Co. stock sells for $42 and just a paid a dividend of $5.15. Dividends are expected to grow at a rate of 4% forever.

XYZ Co. stock sells for $42 and just a paid a dividend of $5.15. Dividends are expected to grow at a rate of 4% forever. What is the cost of common equity?

16.75%

10.70%

12.85%

9.46%

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