Judy's Boutique just paid an annual dividend of $3.13 on its common stock. The firm increases its dividend by 3.80 percent annually. What is the company's cost of equity if the current stock price is $41.56 per share?
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Judy's Boutique just paid an annual dividend of $3.13 on its common stock. The firm increases its dividend by 3.80 percent annually. What is the company's
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- Aboudy Corporation's stock price is currently $22.00 per share. The company has just paid a dividend of $0.55 per share, and shareholders anticipate that this dividend will grow in the future at a rate of 6% per year. Use the Gordon model to calculate the company's cost of equity rE.Goliath Corp. just paid an annual dividend of $5.40 per share. The dividend growth rate is 5.5 percent, the tax rate is 21 percent, and the common stock sells for $58.50 per share. What is the cost of equity?Zimmerman's Landscaping just paid an annual dividend of $2.89 on its common stock. The firm increases its dividend by 3.60 percent annually. What is the company's cost of equity if the current stock price is $40.60 per share?
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- McPherson Pharmaceutical has common stock that is trading for $75 per share. The company paid a dividend of $5.25 last year. This dividend is expected to increase at a rate of 3% per year. What is the cost of equity capital for McPherson? If McPherson issues new shares with a flotation cost of $2 per share, what is the company’s cost of new equity?(using excel formulas)The Drogon Co. just issued a dividend of $2.96 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $45 a share, what is the company's cost of equity?The Green Balloon just paid its first annual dividend of $0.12 a share. The firm plans to increase the dividend by 3.5 percent per year indefinitely. What is the firm's cost of equity if the current stock price is $4.50 a share?