Percent growth rate in its dividends indefinitely

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Reference no: EM131317925

The Absolute Zero Co. just issued a dividend of $2.70 per share on its common stock. The company is expected to maintain a constant 5.6 percent growth rate in its dividends indefinitely.

If the stock sells for $54 a share, what is the company's cost of equity?

Reference no: EM131317925

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