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Stuck on this one can someone help me Suppose Wacken, Limited, just issued a dividend of $2.57 per share on its common stock. The company
Stuck on this one can someone help me
Suppose Wacken, Limited, just issued a dividend of $2.57 per share on its common stock. The company paid dividends of $2.20,$2.31,$2.38, and $2.49 per share in the last four years. a. If the stock currently sells for $65, 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. What if you use the geometric average growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Suppose Wacken, Limited, just issued a dividend of $2.57 per share on its common stock. The company paid dividends of $2.20,$2.31,$2.38, and $2.49 per share in the last four years. a. If the stock currently sells for $65, 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. What if you use the geometric average growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Step by Step Solution
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