A company has a stock price of $50.00 and paid a dividend of $1.48 per share last year. The estimated growth rate is 2%. What is the cost of equity based on the dividend growth model?

Question

Quizplus · Accepted Answer

The Answer of A company has a stock price of $50.00 and paid a dividend of $1.48 per share last year. The estimated growth rate is 2%. What is the cost of equity based on the dividend growth model?

A Company Has a Stock Price of $50