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Dividends are expected to grow at a 4 rate for the

Shamas Famous Restaurants expects to pay a common stock dividend of $1.50 per share next year (d1). Dividends are expected to grow at a 4% rate for the foreseeable future. Shamas' common stock is selling for $18.50 per share and issuance costs are $3.50 per share. What is Shamas cost of internal equity?

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Business Management: Dividends are expected to grow at a 4 rate for the

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