Expected to keep growing indefinatly

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Reference no: EM131354314

Steves specialties inc paid its dividend yesterday, which was $3.50. The dividend has been growing at a rate of 0.010 and is excpected to keep growing indefinatly at that rat. Steves common stock is currently trading at $22.00 per share. The firms beta is 1.09.

T bills currently yield 0.025

Average market return is 0.09

Using the DCF approach what is Steves cost of retained earnings?

Reference no: EM131354314

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