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Ingersoil Rond C0. is expected to pay a dividend of $1 per share at the end of year 1(D1), and the dividend's are expected to
Ingersoil Rond C0. is expected to pay a dividend of $1 per share at the end of year 1(D1), and the dividend's are expected to grow at a constant rate of 2% forever. If the current price of the stock is $36 per share, calculate the expected return or the cost of equity capital for the firm. Type your answer as a percentage and not as decimal (i.e., 5.2 and not 0.052). Do not type the percentage symbol. Round your answer to the nearest two decimals if needed. Hint: P0=D1/(rg)(rg)=D1/P0r=D1/P0+g
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