Suppose stark ltd just issued a dividend of 224 per share, Ask an Expert

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Suppose Stark Ltd. just issued a dividend of $2.24 per share on its common stock. The company paid dividends of $1.80, $1.98, $2.05, and $2.16 per share in the last four years.

If the stock currently sells for $45, 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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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91602705

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