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Suppose Stark Ltd. Just Issued a dividend of $2.57 per share on its common stock. The company pald dividends of $210, $2.31, $2.38, and $249
Suppose Stark Ltd. Just Issued a dividend of $2.57 per share on its common stock. The company pald dividends of $210, $2.31, $2.38, and $249 per share In the last four years a. If the stock currently sells for $60, what is your best estimate of the company's cost of equity capltal using the arithmetic average growth rate In dividends? (Do not round Intermediate calculatlons 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 Intermedlete calculations and enter your answer es a percent rounded to 2 declmal places, e.g., 32.16.) a. Cost of equity b. Cost of equity
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