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The same investor in the prior question is again reviewing a stock using the constant growth dividend discount model. The equity currently trades at...

The same investor in the prior question is again reviewing a stock using the constant growth dividend discount model. The equity currently trades at $100 and pays a dividend of $30. The perpetual growth rate is assumed to be 5%. Compute the investors cost of equity:

A. 2%


B. 4%

C. 6%


D. 8%

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The investors cost of equity= D1/... View the full answer

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