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The dividend next year will be $2.00 per share, and is expected to grow constant at...

The dividend next year will be $2.00 per share, and is expected to grow constant at 4 percent.

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If the stock sells for $40 per share, what is the cost of equity? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

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