Question: Problem 4 - 7 Dividend discount model Company Y does not plow back any earnings and s expected to produce a level dividend stream of

Problem 4-7 Dividend discount model
Company Y does not plow back any earnings and s expected to produce a level dividend stream of $5.9 a share. If the current stock
price is $40.9, what is the cost of equity?
Note: Enter your answer as a percent rounded to 2 decimel ploces.
Problem 4-7 Dividend discount model Company Y does not plow back

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