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Question
Paramount, Inc. just paid a dividend of $2.05 per share, and the firm is expected to experience constant growth of 12.50% over the foreseeable future. The common stock is currently selling for $65.90 per share. What is Paramount's cost of retained earnings using the Dividend Growth Model approach?A) 12.50%
B) 17.90%
C) 16.00%
D) 14.55%
Answer
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