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Return to question 2.5 3 points Suppose Wacken, Limited just issued a dividend of $2.50 per share on its common stock. The company paid
Return to question 2.5 3 points Suppose Wacken, Limited just issued a dividend of $2.50 per share on its common stock. The company paid dividends of $2.00, $2.07, $2.24, and $2.34 per share in the last four years. If the stock currently sells for $69, what is your best estimate of the company's cost of equity capital using arithmetic and geometric growth rates? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. Cost of equity using arithmetic growth rate Cost of equity using geometric growth rate 9.58 % 9.26 %
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