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The cost of equity using the discounted cash flow (or dividend growth) approach Grant Enterprises's stock is currently selling for $45.56 per share, and the

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The cost of equity using the discounted cash flow (or dividend growth) approach Grant Enterprises's stock is currently selling for $45.56 per share, and the firm expects its per-share dividend to be $1.39 in one year analysts project the firm's growth rate to be constant at 2.27%. Using the cost of equity using the discounted cash flow or dividend growth oproach what is Grant's cost of internal oauty 13.91% O 10.82% 9.79% 10.30% Estimating growth rates It is often difficult to estimate the expected tuture dividend growth rate for use in estimating the cost of oxisting equity using the DCFor DG approach. In general, there are three available methods to generate such an estimate . Camry forward a historical realized growth rate, and apply it to the future . Locate and apply an expected future growth rate prepared and published by secunty analyst Use the retention growth model Supos Gratis currently distributing of its caminos in the form of cash dividends it has also historicanerat dan tumom quity TROE) of 42. Grants estimated growth rate is Orade It Now Save & Continue

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