Estimate of company cost of equity

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Suppose Potter Ltd. just issued a dividend of $2.54 per share on its common stock. The company paid dividends of $2.04, $2.11, $2.28, and $2.38 per share in the last four years. If the stock currently sells for $73, what is your best estimate of the company's cost of equity using arithmetic and geometric growth rates?

Cost of equity using arithmetic growth rate ____________%

Cost of equity using geometric growth rate ____________%

Reference no: EM132803284

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