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Homework Help: Fin 3oo

Posted by James on Sunday, March 3, 2013 at 4:30pm.

The Lo Tech Co. just issued a dividend of $ 2.20 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $ 43 a share, what is the company’s cost of equity?

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