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Problem:

The Giants Jersey Stores just paid its first annual dividend of $0.12 a share. The firm plans to increase the dividend by 3.5% per year indefinitely.

Requirement:

Question: What is the firm's cost of equity of the current stock price is $6.50 a share?

4.35%
5.41%
14.42%
18.79
19.98%

Note: Show all workings.

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Category:- Basic Finance
Reference No.:- M91175241

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