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1) The Lo Tech Co. just issued a dividend of $2.20 per share on its common stock. The company is expected to maintain a constant
1) The Lo Tech Co. just issued a dividend of $2.20 per share on its common stock. The company is expected to maintain a constant 6% growth rate in dividends indefinitely. If the stock sells for $43 per share, what is the cost of equity for Lo Tech Co.? Show calculations.
2) Bohannon Corporations common stock has a beta of 1.1. If the risk free rate is 4.5% and the expected return on the market is 12%, what is the companys cost of equity? Show calculations
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