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Summerdahl Resort's common stock is currently trading at $40 a share. The stock is expected to pay a dividend of $2.25 a

Posted: Wed Apr 06, 2022 9:04 am
by answerhappygod
Summerdahl Resort's common stock is currently trading at $40 a
share. The stock is expected to pay a dividend of $2.25 a share at
the end of the year (D1 = $2.25), and the dividend is expected to
grow at a constant rate of 5% a year. What is the cost of common
equity? Round your answer to two decimal places