Question
Suppose Stark Ltd. has just issued a dividend of $2.24 per share on its common stock. The company paid dividends of $1.80, $1.98, $2.05, and
Suppose Stark Ltd. has just issued a dividend of $2.24 per share on its common stock. The company paid dividends of $1.80, $1.98, $2.05, and $2.16 per share over the past four years. |
If the shares currently sell for $45, what is your best estimate of the company's cost of equity using the arithmetic average growth rate of dividends? What happens if you use the geometric average growth rate? |
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Lets estimate the companys cost of equity using the arithmetic average growth rate of dividends D...
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
