Jackson Holding has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 7% forever. Its stock price is $37.8.
Question 1: What is the cost of equity from retained earnings?
Cost of equity=(D1/Current price)+Growth rate
=[(0.45*1.07)/37.8]+0.07
which is equal to
=8.27%(Approx).
Jackson Holding has just paid an annual dividend of $0.45 per share. Analysts expect the firm's...
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