Suppose Nicholas Ltd. just issued a dividend of ($.60) per share on its common stock. The company

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Suppose Nicholas Ltd. just issued a dividend of \($.60\) per share on its common stock. The company paid dividends of \($.35,\) \($.40,\) \($.45,\) and \($.50\) per share in the last four years. If the stock currently sells for \($10,\) what is your best estimate of the company’s cost of equity capital?

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Fundamentals Of Corporate Finance

ISBN: 9780072313000

5th Edition

Authors: Stephen A Ross, Randolph W Westerfield

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