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Using the constant growth model a firms expected d1

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Reference no: EM13572559

Using the constant growth model, a firm's expected (D1) dividend yield is 3% of the stock price, and its growth rate is 7%. If the tax rate is .35%, what is the firm's cost of equity?

A - 10%
B - 6.65%
C - 8.95%
D - More information is required

Reference no: EM13572559

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