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Estimating the DCF Growth Rate [ LO 1 ] Suppose Wacken, Ltd . , just issued a dividend of $ 2 . 7 3 per
Estimating the DCF Growth Rate LO Suppose Wacken, Ltd just issued a dividend of $ per share on its common stock. The company paid dividends of $$$ and $ per share in the last four years. If the stock currently sells for $ what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? What if you use the geometric average growth rate?
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