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Cost of equity-dividend growth

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Cost of Equity: Dividend Growth

Summerdahl Resort's common stock is currently trading at $29 a share. The stock is expected to pay a dividend of $2.25 a share at the end of the year (D1 = $2.25), and the dividend is expected to grow at a constant rate of 8% a year. What is the cost of common equity? Round your answer to two decimal places.

Reference no: EM132487733

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