Will Co. is expected to pay a dividend of $2 per share at the end of year 1(Div1), and the dividends are expected to gro

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answerhappygod
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Will Co. is expected to pay a dividend of $2 per share at the end of year 1(Div1), and the dividends are expected to gro

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Will Co. is expected to pay a dividend of $2 per share at theend of year 1(Div1), and the dividends are expected to grow at aconstant rate of 4 percent forever. If the current price of thestock is $30 per share, calculate the expected return or the costof equity capital for the firm.
Multiple Choice 6 percent 10.67 percent 20 percent 14percent
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