Question: Problem 4-7 Dividend discount model Company Y does not plow back any earnings and is expected to produce a level dividend stream of $5.7 a

Problem 4-7 Dividend discount model Company Y does not plow back any earnings and is expected to produce a level dividend stream of $5.7 a share. If the current stock price is $40.7, what is the cost of equity? Note: Enter your answer as a percent rounded to 2 decimal places

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