What is firms cost of equity if stock is currently selling, Corporate Finance

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What is firms cost of equity if stock is currently selling

Problem

Lancaster recently paid its annual dividend of $4.20 per share. At that time, the firm announced that all future dividends will be increased by 5.5 percent annually. What is the firm's cost of equity if the stock is currently selling for $51.75 per share?

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Corporate Finance: What is firms cost of equity if stock is currently selling

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