What is the companys cost of equity

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The Down and Out Co. just issued a dividend of $2.66 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely. If the stock sells for $55 a share, what is the company's cost of equity? (Do not round your intermediate calculations.)

5.3%

11.57%

11.84%

12.17%

12.78%

Reference no: EM13934341

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