How do calculate the cost of the common share

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Reference no: EM132740241

Problem 1: Verigreen Lawn Care paid dividends of $ 1.85 per common share last year. These dividends are expected to grow at a constant rate of 3% per year. The current price of the common stock is $ 12.50, with a float cost of 15%. Calculate the cost of the common share.

A. 20.9%
B. 15%
C. 18.2%
D. 17.8%

Reference no: EM132740241

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