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You are estimating the cost of equity for the companys common stock using the constant dividend growth model. Your company is expected to pay a
You are estimating the cost of equity for the companys common stock using the constant dividend growth model. Your company is expected to pay a $0.80 cash dividend for the year. There has been a steady growth in dividends of 5% per year which analysts expect to continue.
Calculate the following returns: (1/100 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56):
1) Cost of capital constant dividend growth model: Answer
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