Question
HighGrowth Company has a stock price of $ 22. The firm will pay a dividend next year of $ 1.11, and its dividend is expected
HighGrowth Company has a stock price of $ 22. The firm will pay a dividend next year of $ 1.11, and its dividend is expected to grow at a rate of 4.1 % per year thereafter. What is your estimate of HighGrowth's cost of equity capital?
The required return (cost of capital) of levered equity is-------------%.
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Principles Of Finance
Authors: Scott Besley, Eugene F. Brigham
2nd Edition
003034509X, 9780030345098
