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These answers are incorrect. Help! value: 1.00 points Suppose Powers Ltd. just issued a dividend of $2.52 per share on its common stock. The company
These answers are incorrect. Help!
value: 1.00 points Suppose Powers Ltd. just issued a dividend of $2.52 per share on its common stock. The company paid dividends of $2.02, $2.09, $2.26, and $2.36 per share in the last four years. Required: If the stock currently sells for $71, what is your best estimate of the company's cost of equity capital using arithmetic and geometric growth rates (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Cost of equity Arithmetic dividend growth rate 6.77 Geometric dividend growth rate 6.79Step by Step Solution
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