Question
Cost of Equity: Dividend Growth Summerdahl Resort's common stock is currently trading at $37 a share. The stock is expected to pay a dividend of
Cost of Equity: Dividend Growth
Summerdahl Resort's common stock is currently trading at $37 a share. The stock is expected to pay a dividend of $2.75 a share at the end of the year (D1 = $2.75), and the dividend is expected to grow at a constant rate of 7% a year. What is the cost of common equity? Round your answer to two decimal places.
%
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
