The current stock price of TransContinentalAirways is $65 per share. TCA currently pays an annual per-share dividend
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The current stock price of TransContinentalAirways is $65 per share. TCA currently pays an annual per-share dividend of $3. Over the past 5 years this dividend has grown annually at a rate of 23%. A respected analyst assumes that the current growth rate of dividends will hold up for the next 5 years, after which dividend growth will slow to 5% annually. Use the twostagegordon function to compute the cost of equity.21
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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