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Calculate the cost of equity using DDM under the following assumptions: (Do not round intermediate...

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Finance

Calculate the cost of equity using DDM under the following assumptions: (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Input percentage points only, no % sign)

  • A recently paid annual dividend of $3.31 on its common stock.
  • The company increases its dividend by 3.75 percent annually.
  • The current stock price is $42.28 per share.

The cost of equity is

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