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You are analyzing a common stock whose most recent dividend is $2.24 per share and its sustainable growth rate of dividends is 3.5 percent. Its

You are analyzing a common stock whose most recent dividend is $2.24 per share and its sustainable growth rate of dividends is 3.5 percent. Its current stock price is $87.58 per share. Based on the constant growth dividend valuation model, what is this company's cost of equity?

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