Question
A firm just paid a dividend of $4.00 per share on its common stock. Dividends are expected to grow at a constant rate of 5%
A firm just paid a dividend of $4.00 per share on its common stock. Dividends are expected to grow at a constant rate of 5% per year forever. If the stock currently sells for $50 per share, what is the cost of common equity?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
13th Edition
1337395080, 9781337395083
