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Estimate of steady cost of equity capital

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Reference no: EM132515910

Steady Inc. has a stock price of $30, will pay a dividend next year of $3.30, and has expected dividend growth of 1% per year. What is your estimate of Steady's cost of equity capital?

Hint: What is the required rate of return on equity according to the constant dividend growth model?

Reference no: EM132515910

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