The companyrsquos common stock is currently selling for 50, Ask an Expert

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The company’s common stock is currently selling for $50 per share. The current dividend is $2.00 per share. If dividends are expected to grow at 6 percent per year, the average market return is expected to be 6% for the next several years, your stock is of average volatility for the market, and inflation is expected to be 3% which is equal to the return on government bonds then what is the firm's cost of capital for common stock and expected return for investors?

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Financial Management, Finance

Category:- Financial Management
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