The dividend is expected to grow at a constant rate of 7


QRD, Inc. is expected to pay a dividend of $3.50 per share in one year. The dividend is expected to grow at a constant rate of 7% forever. If the current market price for a share is $67, what is the cost of equity?

A. 14.04%

B. 13.78%

C. 12.22%

D. 10.16%

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Financial Management: The dividend is expected to grow at a constant rate of 7
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