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Summerdahl Resort's common stock is currently trading at $31 a share. The stock is expected to
pay a dividend of $2.50 a share at the end of the year (D1 = $2.50), and the dividend is expected
to grow at a constant rate of 4% a year. What is the cost of common equity? Round your answer
to two decimal places.

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Summerdahl Resorts common stock is currently trading at 31.pdf

  • 1. Summerdahl Resort's common stock is currently trading at $31 a share. The stock is expected to pay a dividend of $2.50 a share at the end of the year (D1 = $2.50), and the dividend is expected to grow at a constant rate of 4% a year. What is the cost of common equity? Round your answer to two decimal places.