Question 5

D Question 5 5 pts The dividend for Mosab Corp. next year is expected to be $1.50. The stock is currently trading for $78 per share. Based on recent financial statements, the following information was also gathered. Net Income was recorded at $41 million. Total Owners' Equity was $802 million, and Dividends paid was listed as $14 million. The estimated cost of equity, Re, is %. Hint: You'll need to use the Earnings Retention Model covered in the Cost of Capital lecture material to estimate dividend growth. Margin of error for correct responses: +/- 10%. Rounding and Formatting instructions: Do not enter dollar signs, percent signs, or commas in your response. Do not round any intermediate work, but round your *final response to 2 decimal places (example: if your answer is 12.3456%, you should enter 12.35)