Question
Summerdahl Resort's common stock is currently trading at $37 a share. The stock is expected to pay a dividend of $1.50 a share at the
Summerdahl Resort's common stock is currently trading at $37 a share. The stock is expected to pay a dividend of $1.50 a share at the end of the year (D1 = $1.50), and the dividend is expected to grow at a constant rate of 4% a year. What is the cost of common equity? Round your answer to two decimal places.
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International Financial Management
Authors: Jeff Madura, Roland Fox
5th Edition
1473770505, 978-1473770508
