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If the firms growth in dividends is expected to remain at

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Gangland Water Guns, Inc., is expected to pay a dividend of $2.10 one year from today. If the firm's growth in dividends is expected to remain at a flat 3 percent forever, then what is the cost of equity capital for Gangland if the price of its common shares is currently $17.50?

a) 15%,

b) 12%,

c) 15.36%,

d) 14.65%

Reference no: EM13478555

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