You are analyzing the cost of capital for MacroSwift Corporation, which develops software operating systems for computers The firms dividend growth rate has been a very constant 3 percent per year for the past 15 years Competition for the firms current products is expected to develop in the next ye...

While the growth in dividends has been extremely constant for Macros ...

You are analyzing the cost of capital for MacroSwift Corporation, which develops software operating systems for computers.

Question:

You are analyzing the for MacroSwift Corporation, which develops software operating systems for computers. The firm’s growth rate has been a very constant 3 percent per year for the past 15 years. Competition for the firm’s current products is expected to develop in the next year, and MacroSwift is currently expanding its revenue stream into the multimedia industry. Evaluate the appropriateness of continuing to use a 3 percent growth rate in dividends for MacroSwift in your model.

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...