Question: Question 13 4 points Save Answer Your company currently has 14 million shares of common stock outstanding that sells for $42 a share and has

Question 13 4 points Save Answer Your company currently has 14

Question 13 4 points Save Answer Your company currently has 14 million shares of common stock outstanding that sells for $42 a share and has a beta of 1.6. Last year, the company paid a dividend of $2.25 a share, and the company projects that dividends will increase by 5% a share well into the future. The market risk premium is 11.5% and T- bills are currently yielding 3.5%. What is the company's cost of equity, using the dividend growth model? O 1.10.36% 2. 10.63% 0 mi 3. 16.3% 4 21.9% 0

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