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Investors in IBM common stock expect the firm to pay a dividend next year of...

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Question

Finance

Investors in IBM common stock expect the firm to pay a dividend next year of

$1.92

per share. Investors also expect these dividends to grow at a rate of

7%

per year. The price of IBM common stock is currently

$80

per share. Based on thisinformation, IBMs current cost of common equity capital is closest to which of the following?

Answer & Explanation Solved by verified expert
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