Cost of equity. Suppose ABC Company has stock currently selling at $21.00 per share that just paid

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Cost of equity. Suppose ABC Company has stock currently selling at

$21.00 per share that just paid dividends of $1.75. They have a required rate of return of 12%. We have the following data for their historical dividends.

Calculate the cost of equity using the DGM approach. image text in transcribed

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Applied Corporate Finance Making Value Enhancing Decisions In The Real World

ISBN: 9783030816308

2nd Edition

Authors: Mark K. Pyles

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Question Posted: Jun 10, 2024 02:20 AM

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Cost of equity. Suppose ABC Company has stock currently selling at $21.00 per share that just paid

Question:

Year Dividends 1 2 $1.10 1.20 1.35 3 4 1.55 5 1.75

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Applied Corporate Finance Making Value Enhancing Decisions In The Real World

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