Question
Using the constant growth rate of 5% the d0 of 2.3664 solve the following: What is the cost of equity, estimated this way? **I suggest
Using the constant growth rate of 5% the d0 of 2.3664 solve the following:
What is the cost of equity, estimated this way? **I suggest that you try and use the Excel to guess the value of cost of equity that can get you closest to the market price of the stock which is 76.03. You can also solve for r in the constant growth model.
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Millon Cornett
1st International Edition
0071181334, 9780071181334
