Illustrate what is the companies cost of equity

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Q. Calculating Cost of Equity. The Down also Out Co. just issued a dividend of $2.40 per share on its common stock. The organization is expected to maintain a constant 5.5 percent growth rate in its dividends indefinitely. If the stock sells for $52 a share, illustrate what is the companies cost of equity?

Reference no: EM1389312

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