What is the company cost of equity

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Reference no: EM131575520

The Down and Out Co. just issued a dividend of $2.46 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $45 a share, what is the company's cost of equity? (Do not round your intermediate calculations.)

10.74%

10.47%

11.28%

10.2%

5.85%

Reference no: EM131575520

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