The following financial information is available on the Haverty Company: $\begin{array}{lr}
\text {Current per share market price }&\$48.00\
\text {Most recent per share dividend }&\$3.50\
\text { Expected long term growth rate}&5.0\%\
\end{array}$
Haverty can issue new common stock to net the company $44 per share. Determine the cost of equity raised through selling new stock using the dividend growth model approach. (Compute answer to the nearest .1%).

Question

The following financial information is available on the Haverty Company: $\begin{array}{lr}
\text {Current per share market price  }&\$48.00\
\text {Most recent per share dividend }&\$3.50\
\text { Expected long term growth rate}&5.0\%\
\end{array}$
 Haverty can issue new common stock to net the company $44 per share. Determine the cost of equity raised through selling new stock using the dividend growth model approach. (Compute answer to the nearest .1%).

Quizplus · Accepted Answer

The Answer of The following financial information is available on the Haverty Company: $\begin{array}{lr}
\text {Current per share market price  }&\$48.00\
\text {Most recent per share dividend }&\$3.50\
\text { Expected long term growth rate}&5.0\%\
\end{array}$
 Haverty can issue new common stock to net the company $44 per share. Determine the cost of equity raised through selling new stock using the dividend growth model approach. (Compute answer to the nearest .1%).

The Following Financial Information Is Available on the Haverty Company