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A company's stock price is $18, and the company recently paid an annual dividend of $1.00 a share. The dividend growth rate is 3.00% annually
A company's stock price is $18, and the company recently paid an annual dividend of $1.00 a share. The dividend growth rate is 3.00% annually and constant forever. The company's stock has a beta of 0.86. The risk free rate is 1.50% and the risk premium is 7.30%.
What is the firm's cost of equity?For your answer, round to the nearest 0.1%do not use the % symbol.For example, if your obtain 0.01058,then enter 10.6; if you obtain 0.00224then enter 0.2
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