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Panhandle Industries, Inc., currently pays an annual common stock dividend of $6.60 per share. The companys dividend has grown steadily over the past 10 years
Panhandle Industries, Inc., currently pays an annual common stock dividend of $6.60 per share. The companys dividend has grown steadily over the past 10 years at 10 percent per year; this growth trend is expected to continue for the foreseeable future. The companys present dividend payout ratio, also expected to continue, is 40 percent. In addition, the stock presently sells at eight times current earnings that is, its multiple is 8.
What is the companys cost of equity capital?
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