What dividend growth rate would be required to produce a cost of equity capital of 8% when the common stock price is $140 per share and the dividend is $4.76 per share?
What dividend growth rate would be required to produce a cost of equity capital of 8% when the common stock price is $140 per share and the dividend is $4.76 per share?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 5P
Related questions
Question
What
produce a
common stock price is $140 per share and the dividend
is $4.76 per share?
Expert Solution
Step 1
Cost of equity =8%
Stock price =$140
Dividend = $4.76
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