Find the firm-s cost of equity using constant growth model


Using the constant growth model, a firm's expected (D1) dividend yield is 3% of the stock price, and its growth rate is 7%. If the tax rate is .35%, what is the firm's cost of equity?

A - 10%
B - 6.65%
C - 8.95%
D - More information is required

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Finance Basics: Find the firm-s cost of equity using constant growth model
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