The current stock price of TransContinental Airways is ($65) per share. TCA currently pays an annual per-share
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The current stock price of TransContinental Airways is \($65\) per share. TCA currently pays an annual per-share dividend of \($3.\) Over the past five years this dividend has grown annually at a rate of 23 percent. A respected analyst assumes that the current growth rate of dividends will hold up for the next five years, after which dividend growth will slow to 5 percent annually. Use the two stagegordon function to compute the cost of equity.18
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