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Suppose Potter Ltd. just issued a dividend of $2.54 per share on its common stock. The company paid dividends of $2.04, $2.11, $2.28, and $2.38
Suppose Potter Ltd. just issued a dividend of $2.54 per share on its common stock. The company paid dividends of $2.04, $2.11, $2.28, and $2.38 per share in the last four years. If the stock currently sells for $73, 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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