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1, 2 and 5 could tou please explain how to get the answer and show the answer? 1. Calculating Cost of Equity [LO1] The Drogon
1, 2 and 5 could tou please explain how to get the answer and show the answer?
1. Calculating Cost of Equity [LO1] The Drogon Co. just issued a dividend of $2,80 per share on its common stock. The company is expected to maintain a constant 4,5 percent growth rate in its dividends inde 2. Calculating Cost of Equity [LO1] The Rhaegel Corporation's common stock has a beta of 1.07. If the risk-free rate is 3.5 percent and the expected return on the market is 10 percent, what is the company's cost of equity capital? 3. Calculating Cost of Equity [L.O1] Stock in Daenerys Industries has a beta of 1.05. The market risk premium is 7 percent, and T-bills are currently yielding 3.4 percent. The company's most recent dividend was $2.35 per share, and dividends are expected to grow at an annual rate of 4.1 percent indefinitely. If the stock sells for $43 per share, what is your best estimate of the company's cost of equity? 4. Fstimating the DCF Growth Rate [LO1] Suppose Stark, Ltd., just issued a dividend of $2.51 per share on its common stock. The company paid dividends of $2.01,$2.17, $2.25, and $2.36 per share in the last four years. If the stock currently sells for $43, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? What if you use the geometric average growth rate? 5. Calculating Cost of Preferred Stock [1,01] Holdup Bank has an issue of preferred slock with a stated dividend of $4.25 that just sold for $93 per share. What is the bank's cost of preferred stockStep by Step Solution
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