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Please show the work and don't round til the end 10.00 points Suppose Stark Ltd. just issued a dividend of $2.79 per share on its
Please show the work and don't round til the end
10.00 points Suppose Stark Ltd. just issued a dividend of $2.79 per share on its common stock. The company paid dividends of $2.30, $2.53, $2.60, and $2.71 per share in the last four years. If the stock currently sells for $50, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity What if you use the geometric average growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equityStep by Step Solution
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