Question: The next dividend payment by Cafe Inc. will be $10 per share. The company is expected to maintain a constant 8% growth rate in its

The next dividend payment by Cafe Inc. will be $10 per share. The company is expected to maintain a constant 8% growth rate in its dividends, indefinitely. The company's stock currently trades at $50. What is Re (required rate of return) for Cafe's equity?

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