(Answered) Suppose stark ltd just issued a dividend of 257 per share

Finance

Suppose Stark Ltd. just issued a dividend of $2.57 per share on its common stock. The company paid dividends of $2.20, $2.31, $2.38, and $2.49 per share in the last four years.

1) If the stock currently sells for $65, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends?

2) What if you use the geometric average growth rate?

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