Laurentide Union Bank is expected to pay a dividend of $4.20 per share in one y…

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Wize University Introduction to Finance Textbook > Cost of Capital

Cost of Equity

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Laurentide Union Bank is expected to pay a dividend of $4.20 per share in one year. The dividend is expected to grow at a rate of 5 percent forever. If the current market price for a share of Laurentide Union Bank is $40, what is the cost of equity?

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