The last paid dividend is $2 for a share of common stock that is currently selling for $20. What is the cost of common equity if the long-term growth rate in dividends for the firm is expected to be 8%?
A) 10.8%
B) 12.8%
C) 14.8%
D) 16.8%
E) 18.8%
Correct Answer:
Verified
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