The Down and Out Co. just issued a dividend of $1.1 per share on its common stock.
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Question:
The Down and Out Co. just issued a dividend of $1.1 per share on its common stock. The company is expected to maintain a constant 0.06 growth rate in its dividends indefinitely. If the stock sells for $37.74 a share, what is the company's cost of equity? Enter the answer with 4 decimals (e.g. 0.1234)
The Up and Coming Corporation's common stock has a beta of 0.54. If the risk-free rate is 0.02 and the expected return on the market is 0.07, what is the company's cost of equity capital? Enter the answer with 4 decimals (e.g. 0.1234).
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