Compute the firm annualized cost of equity

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Reference no: EM133071726

Assume the current selling price of a firm's stock is:  $72. Using the Excel data below, Dividend Data, compute the firm's annualized cost of equity using the Gordon dividend model.

Dividend Data

 

 

 

 

 

Semi-Annual Period

Dividend per share

1

0.160

2

0.165

3

0.170

4

0.176

5

0.181

6

0.191

7

0.210

8

0.215

9

0.227

10

0.230

11

0.240

12

0.248

13

0.256

14

0.275

15

0.284

16

0.297

17

0.303

18

0.321

19

0.342

20

0.355

21

0.364

22

0.378

Reference no: EM133071726

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