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Bob Corp. is expected to pay a dividend of $.65 per share over the next year, and the stock is currently selling for $10.40 a share.

  1. Bob Corp. is expected to pay a dividend of $.65 per share over the next year, and the stock is currently selling for $10.40 a share. If dividends are expected to grow at 2 percent a year, what is the cost of existing common stock?

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