A firm is expected to pay a dividend of 350 per share in


A firm is expected to pay a dividend of $3.50 per share in one year. This dividend, along with the firm’s earnings, is expected to grow at a rate of 7% forever. If the current market price for a share is $67, what is the cost of equity?

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Financial Management: A firm is expected to pay a dividend of 350 per share in
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