Question
HighGrowth Company has a stock price of $ 19$19. The firm will pay a dividend next year of $ 1.06$1.06, and its dividend is expected
HighGrowth Company has a stock price of
$ 19$19.
The firm will pay a dividend next year of
$ 1.06$1.06,
and its dividend is expected to grow at a rate of
3.6 %3.6%
per year thereafter. What is your estimate of HighGrowth's cost of equity capital?
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Financial Modeling
Authors: Simon Benninga, Tal Mofkadi
5th Edition
0262046423, 9780253337825
