Question : Suppose that your company expected to pay a dividend of : 5076
Suppose that your company is expected to pay a dividend of $1.50 per share next year. There has been a steady growth in dividends of 4% per year and the market expects that to continue. The current price is $20. What is the cost of equity?
11.5%
11.8%
4%
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A. 
11.5% 


B. 
11.8% 

C. 
4% 

D. 
Need more information. 