Question: A firm that is expected to pay $3 dividends next year, the dividends are expected to grow at a constant rate of 3% per year,

A firm that is expected to pay $3 dividends next year, the dividends are expected to grow at a constant rate of 3% per year, and the current price of the firm's shares is $60. Assume the after-tax cost of debt is 2%. Find the cost of equity. 10% 7% 9% 8%

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