Suppose in a found ltd just issued a dividend of 152 per, Ask an Expert

Economics

Suppose In a Found Ltd. just issued a dividend of $1.52 per share on its common stock. The company paid dividends of $1.20, $1.26, $1.33, and $1.44 per share in the last four years.

If the stock currently sells for $55, what is your best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends?

What if you use the geometric average growth rate?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91406046

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