Suppose that your company is expected to pay a dividend of $1.50 per share next...
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Accounting
Suppose that your company is expected to pay a dividend of $1.50 per share next year. There has been a steady growth in dividends of 4% per year and the market expects that to continue. The current price is $20. What is the cost of equity?
A.
11.5%
B.
11.8%
C.
4%
D.
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