Tim's Tools just issued a dividend of $1.80 per share on its common stock.The company is expected to maintain a constant 4 percent growth rate in its dividends indefinitely.If the stock sells for $31 a share,what is the company's cost of equity?
A) 8.81 percent
B) 9.37 percent
C) 9.94 percent
D) 10.04 percent
E) 10.46 percent
Correct Answer:
Verified
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