The Drogon Co. just issued a dividend of $3.30 per share on its common stock. The company is expected to maintain a constant 6.8 percent growth rate in its dividends indefinitely. If the stock sells for $66 a share, what is the company’s cost of equity?

The Drogon Co. just issued a dividend of $3.30 per share on its common stock. The company is expected to maintain a constant 6.8 percent growth rate in its dividends indefinitely.

If the stock sells for $66 a share, what is the company’s cost of equity?