What is cost of common equity

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Reference no: EM131450069

Summerdahl Resorts' common stock is currently trading at $23.00 a share. The stock is expected to pay a dividend of $3.10 a share at the end of the year (D1 = $3.10), and the dividend is expected to grow at a constant rate of 5.50% a year. What is the cost of common equity? Round your answer to two decimal places. Answer is either: a). 18.98% b). 22.39 c). 19.55% d). 22.58% e). 19.36

Reference no: EM131450069

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