Laurentide Union Bank is expected to pay a dividend of $4.20 per share in one year.The dividend is expected to grow at a rate of 5 percent forever.If the current market price for a share of Laurentide Union Bank is $40,what is the cost of equity?
A) 5.00%
B) 9.52%
C) 10.50%
D) 15.50%
Correct Answer:
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