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Expected return or the cost of equity capital for firm

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Reference no: EM132799720

UNT Inc. is expected to pay a dividend of $1.50 per share at the end of year 1(Div1), and the dividends are expected to grow at a constant rate of 2 percent forever. If the current price of the stock is $30 per share, calculate the expected return or the cost of equity capital for the firm.

Reference no: EM132799720

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