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Suppose Potter Ltd. just issued a dividend of $2.48 per share on its common stock. The company paid dividends of $1.98, $2.05, $2.22, and $2.32
Suppose Potter Ltd. just issued a dividend of $2.48 per share on its common stock. The company paid dividends of $1.98, $2.05, $2.22, and $2.32 per share in the last four years. If the stock currently sells for $67, what is your best estimate of the company's 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.) Answer is complete but not entirely correct. 4.59 % % Cost of equity using arithmetic growth rate Cost of equity using geometric growth rate 4.03
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