Question
Suppose Hornsby Ltd. just issued a dividend of $1.65 per share on its common stock. The company paid dividends of $1.24, $1.33, $1.44, and $1.53
Suppose Hornsby Ltd. just issued
a dividend of $1.65 per share on its common stock. The company paid
dividends of $1.24, $1.33, $1.44, and $1.53 per share in the last four years. If
the stock currently sells for $55, what is your best estimate of the company's
cost of equity capital using arithmetic and geometric growth rates?
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Mathematics For Business
Authors: Stanley A Salzman, Charles D Miller, Gary Clendenen
8th Edition
0321357434, 9780321357434
