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Accounting

Problem:

The Lo Tech Co. just issued a dividend of $2.80 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely.

Required:

If the stock sells for $57.00 a share, what is the company's cost of equity?

12.30%
11.21%
10.91%
5.31%
5.21%

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167161

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