What is the cost of common equity

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Summerdahl Resorts' common stock is currently trading at $26.50 a share. The stock is expected to pay a dividend of $2.90 a share at the end of the year (D1 = $2.90), and the dividend is expected to grow at a constant rate of 7.90% a year. What is the cost of common equity? Round your answer to two decimal places. SHOW YOUR WORK AND EXPLAIN YOUR ANSWER

Reference no: EM13924807

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