Problem

Duke Energy has been paying dividends steadily for 20 years. During that time, dividends h...

Duke Energy has been paying dividends steadily for 20 years. During that time, dividends have grown at a compound annual rate of 7%. If Duke Energy’s current stock price is $78 and the firm plans to pay a dividend of $6.50 next year, what is Duke’s cost of common stock equity?

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Solutions For Problems in Chapter 9