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What is the company cost of equity

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Reference no: EM131317832

The Down and Out Co. just issued a dividend of $2.46 per share on its common stock. The company is expected to maintain a constant 4 percent growth rate in its dividends indefinitely. If the stock sells for $35 a share, what is the company's cost of equity?

  • 11.88%
  • 11.31%
  • 11.03%
  • 10.74%
  • 7.42%

Reference no: EM131317832

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