What is the implied cost of common equity capital for dedus

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The Dedus Shoes, Inc., has common shares with a price of $28.76 per share. The firm paid a dividend of $1.00 yesterday, and dividends are expected to grow at 10 percent for two years and then at 5 percent thereafter. What is the implied cost of common equity capital for Dedus?

9.00%
8.00%
7.00%
10.00%

 

Reference no: EM13265502

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