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Suppose Potter Ltd. just issued a dividend of $2.49 per share on its common stock. The company paid dividends of $1.99, $2.06, $2.23, and $2.33
Suppose Potter Ltd. just issued a dividend of $2.49 per share on its common stock. The company paid dividends of $1.99, $2.06, $2.23, and $2.33 per share in the last four years. If the stock currently sells for $68, 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.) Cost of equity using arithmetic growth rate Cost of equity using geometric growth rate Suppose Potter Ltd. just issued a dividend of $2.49 per share on its common stock. The company paid dividends of $1.99, $2.06, $2.23, and $2.33 per share in the last four years. If the stock currently sells for $68, 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.) Cost of equity using arithmetic growth rate Cost of equity using geometric growth rate
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