Cost of equity based on dividend growth model

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Reference no: EM131915691

Oracle currently pays $.76 per year of dividends and is valued at $48.30 Dividends have been growing at 25% per year for the last 4 years.

It is expected to continue to grow at 20% for 4 more years then level off at 3%.

What is Oracle's cost of equity based on the dividend growth model?

Reference no: EM131915691

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