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Posted on Aug 22, 2024

Suppose Stark 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 Stark 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 companys cost of equity capital using the arithmetic?

What is geometric average rate?

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