Find what is your estimate of the firm cost of equity

Reference no: EM132012585

Question: You need to estimate the cost of equity (Ke) for a firm, Hokie Enterprises. The firm is a mature firm with a stable dividend policy. The dividend just paid (yesterday) was $0.9 per share, and you expect the dividend growth rate to be 6.8% per year for a long long time. The stock currently sells for $13.7 per share. What is your estimate of the firm's cost of equity? Answer in decimal form to four decimal places.

Reference no: EM132012585

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