Question
A company's stock sells for $50, its next expected dividend is $2, and its expected constant growth rate is 4%. The company does not repurchase
A company's stock sells for $50, its next expected dividend is $2, and its expected constant growth rate is 4%. The company does not repurchase any stock, and its expected and required rates of return are equal. What is the company's estimated cost of common equity given these assumptions?
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
