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What is the cost of common equity

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Reference no: EM132951074

Problem - Summerdahl Resort's common stock is currently trading at $28 a share. The stock is expected to pay a dividend of $2.25 a share at the end of the year (D1 = $2.25), and the dividend is expected to grow at a constant rate of 3% a year. What is the cost of common equity?

Reference no: EM132951074

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