Welch's Lawn Care products just paid a dividend of $1.85. This dividend is expected to grow at a constant rate of 3% per year, so the next expected dividend is $1.90. The stock price is currently $12.50. . The company's marginal tax rate is 35%. Compute the cost of common equity.

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The Answer of Welch's Lawn Care products just paid a dividend of $1.85. This dividend is expected to grow at a constant rate of 3% per year, so the next expected dividend is $1.90. The stock price is currently $12.50. . The company's marginal tax rate is 35%. Compute the cost of common equity.

Welch's Lawn Care Products Just Paid a Dividend of $1