What is cost of common equity

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Summerdahl Resorts' common stock is currently trading at $40 a share. The stock is expected to pay a dividend of $2.00 a share at the end of the year (D1= $2.00), and the dividend is expected to grow at a constant rate of 8% a year. What is the cost of common equity? Round your answer to two decimal places.

Reference no: EM131323950

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