1)The Down and Out Co. just issued a dividend of $2.51 per share on its common stock. The company is expected to maintain a constant 4 percent growth...

1)The Down and Out Co. just issued a dividend of $2.51 per share on its common stock. The company is expected to maintain a constant 4 percent growth rate in its dividends indefinitely. If the stock sells for $50 a share, what is the company's cost of equity? (Do not round your intermediate calculations.)

rev: 09_20_2012