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Cost of common equity

The earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow at 5% per year in the future. Carpetto's common stock sells for $20.50 per share, its last dividend was $1.80, and it will pay a dividend of $1.89 at the end of the current year.

Assuming you have equal confidence in the inputs used for the three approaches, what is your estimate of Carpetto's cost of common equity? Round your answer to two decimal places.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9867469

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