Question
The Drogon Co. just issued a dividend of $2.21 per share on its common stock. The company is expected to maintain a constant 7 percent
The Drogon Co. just issued a dividend of $2.21 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely. If the stock sells for $40 a share, what is the company's cost of equity?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
