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Countess Corp. is expected to pay an annual dividend of $5.29 on its common stock in...

Countess Corp. is expected to pay an annual dividend of $5.29 on its common stock in one year. The current stock price is $79.83 per share. The company announced that it will increase its dividend by 3.40 percent annually. What is the company's cost of equity?

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Answer #1

D1/(ke-g) = $79.83 Price $5.29 D1 3.40% ke -g= [5.29/79.83] 6.63% 10.03% 6.63%+3.40%] Cost of equity ke =

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