11 Jan

The Giuntoli Co. just issued a dividend of $2.30 per share on its common stock.

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Question: The Giuntoli Co. just issued a dividend of $2.30 p…

The Giuntoli Co. just issued a dividend of $2.30 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely.

If the stock sells for $43.10 a share, what is the company’s cost of equity?

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