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Suppose Stark Ltd. just issued a dividend of $1.96 per share on its common stock. The company paid dividends of $1.60, $1.70, $1.77, and $1.88 per share in the last four years.
If the stock currently sells for $70, what is your best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Cost of equity %
What if you use the geometric average growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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How large can the capital budget be before common stock must be sold and what is the cost of Haroldson's retained earnings?
Seven in ten students attending publicly funded universities leave the state after graduation, indicating that a very large fraction of states' investments in human capital bears fruit elsewhere.- Why might states still play such a large role in h..
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