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Company cost of capital right before ex-dividend date

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Question

Company DEF has just paid a dividend of $1.00. Because of its growth potential, its dividend is forecast to grow at a rate of 5 percent per year indefinitely. If the company's stock price immediately before it paid the $1.00 dividend was $25, what is the company's cost of capital? That is, what was the company's cost of capital right before the ex-dividend date?

Reference no: EM133239388

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