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Suppose Hornsby Ltd. just issued a dividend of $2.59 per share on its common stock. The company paid dividends of $2.09, $2.16, $2.33, and $2.43

Suppose Hornsby Ltd. just issued a dividend of $2.59 per share on its common stock. The company paid dividends of $2.09, $2.16, $2.33, and $2.43 per share in the last four years. What was the dividend growth rate for each year? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Growth rate
Year 1 %
Year 2 %
Year 3 %
Year 4 %

What were the arithmetic and geometric dividend growth rates over the past four years? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity
Arithmetic dividend growth rate %
Geometric dividend growth rate %

If the stock currently sells for $78, what is your best estimate of the companys cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity
Arithmetic dividend growth rate %
Geometric dividend growth rate %

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