Cost of equity capital using geometric average growth rate

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Reference no: EM13933033

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 geometric average growth rate?

Reference no: EM13933033

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Cost of equity capital using geometric average growth rate : 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 c..

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