Question: A B B 4 15 ABC Corp. has a stock price 50 right now. The firm has just paid a dividend of $3 per share,

A B B 4 15 ABC Corp. has a stock price

A B B 4 15 ABC Corp. has a stock price 50 right now. The firm has just paid a dividend of $3 per share, and intelligent shareholders think that this dividend will grow by a rate of 5% per year. What is the cost of equity using Gordon dividend model. 6 7 8 9

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