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The companys dividends have been growing at a rate of 5 if

Suppose Pat, Ltd. just issued a dividend of $2.50 per share on its common stock. The company's dividends have been growing at a rate of 5%. If the stock currently sells for $65, what is your best estimate of the company's cost of equity? (Show your work.)

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Finance Basics: The companys dividends have been growing at a rate of 5 if

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