What is the company cost of equity

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Reference no: EM131340851

The Down and Out Co. just issued a dividend of $2.81 per share on its common stock. The company is expected to maintain a constant 4 percent growth rate in its dividends indefinitely. If the stock sells for $50 a share, what is the company's cost of equity? (Do not round your intermediate calculations.)

A.) 5.92%

B.) 9.84%

C.) 9.35%

D.) 9.62%

E.) 10.34%

Reference no: EM131340851

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