Calculate cost of equity, A company wishes to know the cost

Calculate cost of equity

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Reference no: EM132064092

A company wishes to know the cost of its equity, which is all in common stock. Use some or all of the following data to calculate Cost of Equity.

Take out to one decimal point. Show your work.

Cost of a share of stock: $38.00

Annual dividend per share of stock: $2.10

Tax rate: 35%

Interest rate on debt: 7.5%

Growth demand of investors: 8%.

Reference no: EM132064092

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