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Compute the cost of the firm common stock equity

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Reference no: EM133035479

Question - A firm has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year. The growth rate in dividends has been 5 percent. Compute the cost of the firm's common stock equity?

A. 10 percent

B. 13 percent

C. 8 percent

D. 5 percent

Reference no: EM133035479

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