Swiss Cheeses, Inc. has paid annual dividends of $1.00, $1.04, $1.09, and $1.15 per share over the last four years, respectively. The stock is currently selling for $42 a share. What is this firm’s cost of equity?
A) 7.45 percent
B) 7.64 percent
C) 7.83 percent
D) 7.87 percent
E) 8.02 percent
ANSWER
B
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