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Estimating the DCF Growth Rate. Suppose Katta Ltd. just issued a dividend of $2.66 per share on its common stock. The company paid dividends of

Estimating the DCF Growth Rate. Suppose Katta Ltd. just issued a dividend of $2.66 per share on its common stock. The company paid dividends of $1.90, $2.00, $2.20, and $2.30 per share in the last four years. If the stock currently sells for $85, what is your best estimate of the companys cost of equity?

Estimating the DCF Growth Rate. Suppose Platta Ltd. just issued a dividend of $2.40 per share on its common stock. The company paid dividends of $1.95, $2.05, $2.25, and $2.35 per share in the last four years. If the stock currently sells for $70, what is your best estimate of the companys cost of equity?

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