What is djh expected cost of stock

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The DJH Corporation just paid a dividend of $ 3.50 . It expects its cash dividends to grow 4.7 % per year forever. DJH has a debt ratio of L = 34 %. Its borrowing rate is rd = 6.0 %. DJH pays corporate taxes at the rate of 38 %, rf = 3.2 %, rM = 9.8 %, and DJH's common stock is currently selling for $ 25 per share. What is DJH's expected cost of stock? Short your answer to the nearest .1%. Show your answer as a whole number, thus 4.2% should be 4.2 rather than .042.

Please provide detailed calculation steps.

Reference no: EM131702719

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