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You have been asked to estimate the weighted Average Cost of Capital for Surtsey Corp. The firm's capital structure consists of debt, preferred stock and

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You have been asked to estimate the weighted Average Cost of Capital for Surtsey Corp. The firm's capital structure consists of debt, preferred stock and common stock. The next 6 questions (Questions 8-13) all pertain to the characteristics of the firm's capital structure components. You will be asked to compute the firm's WACC in Question #14. Historical dividends for the firm's common stock were: Year Dividend 2013 0.76 2014 0.76 2015 0.79 2016 0.80 2017 0.83 2018 0.85 2019 What if your best estimate of the simple average growth rate in the dividends paid to common stockholders? 0.87 Multiple Choice ) 1.8% 0 2.7% 0 3.4% 0 2.3% 0 3.2%

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