Cost of common stock: Whitewall Tire Co. just paid a $1.60 dividend on its common
shares. If Whitewall is expected to increase its annual dividend by 2 percent per year into
the foreseeable future and the current price of Whitewalls common shares is $11.66,
what is the cost of common equity for Whitewall?

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13.7 Cost of common stock: Whitewall Tire Co. just paid a $1.60 dividend on its commo shares. If Whitewall is expected to increase its annual dividend by 2 percent per year the foreseeable future and the current price of Whitewall's common shares is $11.66 what is the cost of common equity for Whitewall? Dividend just paid (Do) Dividend growth rate (perpetual) Current stock price Cost of common equity $1.60 2% $11.66 dividend on its common d by 2 percent per year into mmon shares is $11.66