Issued dividend-growth rate in its dividends indefinitely

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Reference no: EM13947171

The Absolute Zero Co. just issued a dividend of $3.10 per share on its common stock. The company is expected to maintain a constant 6.4 percent growth rate in its dividends indefinitely. If the stock sells for $62 a share, what is the company’s cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM13947171

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Issued dividend-growth rate in its dividends indefinitely : The Absolute Zero Co. just issued a dividend of $3.10 per share on its common stock. The company is expected to maintain a constant 6.4 percent growth rate in its dividends indefinitely. If the stock sells for $62 a share, what is the company’s cost ..

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