Dividend-yield-plus-growth-rate approach to calculate

Reference no: EM131107844

Wyatt Inc. uses the dividend-yield-plus-growth-rate approach to calculate the cost of equity. Investors expect Wyatt's year-end dividend (D1) to be $3.00 a share, its expected dividend growth rate is 5%, and the stock currently sells for $60 a share. What is Wyatt's cost of equity?

Reference no: EM131107844

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Dividend-yield-plus-growth-rate approach to calculate : Wyatt Inc. uses the dividend-yield-plus-growth-rate approach to calculate the cost of equity. Investors expect Wyatt's year-end dividend (D1) to be $3.00 a share, its expected dividend growth rate is 5%, and the stock currently sells for $60 a sh..

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