The firm just paid a 200 common dividend in the past year


The firm also has 14 million shares of common stock outstanding with a price of $20.00 per share. The firm just paid a $2.00 common dividend in the past year, and that dividend is expected to increase by 5 percent per year forever. What is that company's cost of common stock?

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Finance Basics: The firm just paid a 200 common dividend in the past year
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