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16. Ding Inc. common stock is currently trading at $30.00/share. The company just paid $1.75 per share as its annual dividend. The dividends have been
16. Ding Inc. common stock is currently trading at $30.00/share. The company just paid $1.75 per share as its annual dividend. The dividends have been increasing by 3 percent annually and are expected to continue doing the same. What is this firm's cost of equity? [WARNING: Just paid means yesterday. Div1 is not Divyesterday. Thus, you need to calculate Div1 before you apply the re-arranged dividend-growth equation: Div1/P0 + g.]
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