Ebook problem walk-through cost of equity

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eBook Problem Walk-Through Cost of Equity: Dividend Growth

Summerdahl Resort's common stock is currently trading at $39 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 7% a year. What is the cost of common equity? Round your answer to two decimal places.

Reference no: EM132467304

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