Problemlast week lesters electronics paid an annual, Ask an Expert

Accounting

Problem:

Last week, Lester's Electronics paid an annual dividend of $2.10 on its common stock. The company has a longstanding policy of increasing its dividend by 3 percent annually. This policy is expected to continue.

Required:

Question: What is the firm's cost of equity if the stock is currently selling for $44.60 a share?

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169965

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