305,000 shares of common stock selling for $66.10 per share. The stock has a beta of...
305,000 shares of common stock selling for $66.10 per share. The stock has a beta of 1.02 and will pay a dividend of $4.30 next year. The dividend is expected to grow by 5.1 percent per year indefinitely.
What is the cost of equity?
Please show work
Homework Answers
cost of equity=(D1/Current price)+Growth rate
=(4.3/66.1)+0.051
which is equal to
11.61%(Approx).
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