I" CENGAGE MINDTAP Q Search this course Problem Set 2 x Back to Assignment Attempts -:- I I Keepme Highest/\"i 2. Problem 9705 (Cost of Equity: Dividend Growth) L.'.l E Cost of Equity: Dividend Growth Summerdahl Resort's common stock is currently trading at $35 a share. The stock is expected to pay a dividend of $2.75 a share at the end of the year (D1 = 52.75), and the diVidend is expected to grow at a constant rate of 8% a year. What is the cost of common equity? Round your answer to two deCimal places. % Grade it Now Save 3. Continue Continue Without saving