Question
Roku just paid a dividend of $ 6 per share which are expected to increase 4.6 % per year. If Roku's stock is valued at
Roku just paid a dividend of $ 6 per share which are expected to increase 4.6 % per year. If Roku's stock is valued at $ 153 per share using the Gordon Growth Model, what is Roku's cost of capital?
(Enter your percentage answer as a number rounded to 2 decimal places. For example, 10.25% would be entered as 10.25).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Probability For Risk Management
Authors: Matthew J. Hassett, Donald G. Stewart
2nd Edition
156698548X, 978-1566985482
