Determining the company cost of equity


RElectric is a regulated public utility, and it is expected to provide steady growth of dividends of 5% per year for the indefinite future. Its last dividend was $4 per share; the stock sold for $60 per share just after the dividend was paid. What is the company's cost of equity (required rate of return)? Please show your work.

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Finance Basics: Determining the company cost of equity
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