Greengrocer Foods will pay a dividend of $3.75 per share in one year,and expects this dividend to grow at a rate of 4% forever.If its common shares are currently trading at $50,what is the cost of Greengrocer Foods' equity?
A) 7.50%
B) 11.50%
C) 12.25%
D) 15.75%
Correct Answer:
Verified
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