The expected dividend is $2.50 for a share of stock priced at $25. What is the...
The expected dividend is $2.50 for a share of stock priced at $25. What is the cost of common equity if the long-term growth in dividends is projected to be 4% assuming the firm raises additional equity via retained earnings
Homework Answers
Cost of equity=(D1/Current price)+Growth rate
=(2.5/25)+0.04
which is equal to
=14%
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