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Suppose Stark Ltd. just issued a dividend of $2.13 per share on its common stock. The company paid dividends of $1.70, $1.87, $1.94, and $2.05

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Suppose Stark Ltd. just issued a dividend of $2.13 per share on its common stock. The company paid dividends of $1.70, $1.87, $1.94, and $2.05 per share in the last four years. a. If the stock currently sells for $50, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. What if you use the geometric average growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. : % Cost of equity Cost of equity b. %

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