Sweet Treats common stock is currently priced at $19.06 a share. The company just paid $1.15 per share as its annual dividend. The dividends have been increasing by 2.5 percent annually and are expected to continue doing the same. What is this firm's cost of equity?
A) 6.03 percent
B) 6.18 percent
C) 8.47 percent
D) 8.68 percent
E) 8.82 percent
Correct Answer:
Verified
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