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Slobodan has just calculated the equity cost of capital for Agrokomerc Inc. using two different methods -- the CAPM and the DGM -- and arrived
Slobodan has just calculated the equity cost of capital for Agrokomerc Inc. using two different methods -- the CAPM and the DGM -- and arrived at exactly the same estimate. The risk-free rate is 2.5%; Agrokomerc's Beta is 1.0; the market return is 5%. Agrokomerc pays dividends of $3 per year and its stock price is $145. Slobodan expects Agrokomerc to grow at what rate? Round your final answer to two decimal places and express it in % (if your answer is, say, 3.55%, type 3.55 as your answer).
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