A company's stock is trading at 35 per share. If the company has announced that it would distribute 11 dividends per share next year with no dividend growth, what is the cost of equity that investors expect out of the stock? Question 33 A company paid 54 dividends per share in the current year and is expected to pay the same next year. Assuming the company's cost of equity is 0.18, and a dividend growth of 0.09 remains the same in perpetuity, what is the price of the company's stock? Question 34 A company belongs to an industry that had an average P/E of 36 in the previous year. However, because the industry is booming. investors re-rated the industry and expect an average forward P/E of 39 already. Suppose that the company's earnings per share (EPS) is expected to be 74 next year from just 17 last year: how much is the company's stock using the forward multiple?