Expected to pay an annual dividend in the amount

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Reference no: EM13913861

ABC Corp. is expected to pay an annual dividend in the amount of $2.50 a share next year. This dividend constantly grows by 5 percent per year. The current price of the company’s stock is $50.60 per share. What is the cost of equity?

4.90%

5.15%

9.90%

10.40%

5.00%

Reference no: EM13913861

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