Cost of common stock: Seerex Wok Co. is expected to pay a dividend of $1.10 one year
from today on its common shares. That dividend is expected to increase by 5 percent
every year thereafter. If the price of Seerex is $13.75, what is Seerexs cost of common
equity? Show all work in Excel.

13.8 Cost of common stock: Seerex Wok Co. is expected to pay a dividend of $1.10 on from today on its common shares. That dividend is expected to increase by 5 percen every year thereafter. If the price of Seerex is $13.75, what is Seerex's cost of commo equity? Expected dividend (D1) Growth rate Current stock price Cost of common equity $1.10 5% $13.75 a dividend of $1.10 one year increase by 5 percent eerex's cost of common