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Suppose Beta, Ltd., just issued a dividend of $2.10 per share on its common stock. on its common stock. The Company paid dividends of $2.15,
Suppose Beta, Ltd., just issued a dividend of $2.10 per share on its common stock. | |||||||
on its common stock. The Company paid dividends of $2.15, $2.34, $2.75, $3.15, | |||||||
per share in the last four years. | |||||||
If the stock currently sells for $56, what is your best estimate of the companys cost of equity capital | |||||||
using the geometric average growth rate?
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