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59 Your company's stock sells for S40 per share, its last dividend (Do) was $2.00, and its growth rate is a constant 6 percent. What

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59 Your company's stock sells for S40 per share, its last dividend (Do) was $2.00, and its growth rate is a constant 6 percent. What is the firm's cost of equity F. 5.00% G. 5.05% H. 10.00% I. 10.25% J. none of the above Gollies Inc.'s most recent dividend was $3.00 per share (Do = $3.00). The dividend is expected to grow at a rate of 6 percent per year. The risk-free rate is 5 percent and the return on the market is 9 percent. If the company's beta is 1.5, what is the price of the stock today? A. $63.60 B. $57.14 C. $40.00 D. $68.06 E $60.57 5

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