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High Growth Company has a stock price of $30. The firm will pay a dividend next year of $2.0, and its dividend is expected to
High Growth Company has a stock price of $30. The firm will pay a dividend next year of $2.0, and its dividend is expected to grow at a rate of 3% per year thereafter. What is your estimate of High Growth's cost of equity capital? Answer: %. (Answer in % and round to two decimal places. For example, if your answer is 12.34%, answer 12.34. Don't answer 0.12, 0.1234, or 12.34%.)
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