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Last week, Lester's Electronics paid an annual dividend of $2.25 on its common stock. The...

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Accounting

Last week, Lester's Electronics paid an annual dividend of $2.25 on its common stock. The company has a longstanding policy of increasing its dividend by 3.5 percent annually. This policy is expected to continue. What is the firm's cost of equity if the stock is currently selling for $44.5 a share?

8.73%

12.04%

10.5%

11.9%

9.86%

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