Discuss the gordon model approach

Reference no: EM131981004

Question: Heavy Rain Corporation just paid a dividend of $2.29 per share, and the firm is expected to experience constant growth of 5.77% over the foreseeable future. The common stock is currently selling for $64.15 per share. What is Heavy Rain's cost of retained earnings using the Gordon Model (DDM) approach?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Reference no: EM131981004

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