What is the cost of common equity

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Question - Summerdahl Resort's common stock is currently trading at $20 a share. The stock is expected to pay a dividend of $1.25 a share at the end of the year (D1 = $1.25), and the dividend is expected to grow at a constant rate of 6% a year. What is the cost of common equity? Round your answer to two decimal places.

Reference no: EM133016167

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