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What is the cost of common equity

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Question - Summerdahl Resorts' common stock is currently trading at $31.00 per 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 5% a year. What is the cost of common equity?

Reference no: EM132763457

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