HighGrowth Company has a stock price of $17. The firm will pay a dividend next year...
HighGrowth Company has a stock price of $17. The firm will pay a dividend next year of $0.98, and its dividend is expected to grow at a rate of 3.7% per year thereafter. What is your estimate of HighGrowth's cost of equity capital?
The required return (cost of capital) of levered equity is _____%. (Round to one decimal place.)
Homework Answers
What is your estimate of High Growth's cost of equity capital
=(D1/P)+dividend growth
=(0.98/17)+3.7%
=9.5%
the above is answer..
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