Problem

Calculating Cost of Equity The Devon Co. just issued a dividend of $2.40 per share on its...

Calculating Cost of Equity The Devon Co. just issued a dividend of $2.40 per share on its common stock. The company is expected to maintain a constant 5.5 percent growth rate in its dividends indefinitely. If the stock sells for $52 a share, what is the company’s cost of equity?

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