Compute the companys cost of equity capital

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Reference no: EM132008574

Suppose Hornsby Ltd. just issued a dividend of $2.50 per share on its common stock. The company paid dividends of $2.00, $2.07. $2.24. and $2.34 per share in the last four years.

If the stock currently sells for $69. what is your best estimate of the company's cost of equity capital using arithmetic and geometric growth rates?

(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM132008574

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