What is the cost of common stock equity financing

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Question: Mavs Inc. wishes to determine its cost of common stock equity, rs. The market price, P0, of its common stock is $36.18 per share. The firm expects to pay a dividend, D1, of $4.20 at the end of the coming year, 2021. The dividends paid on the outstanding stock over the past 6 years (2015-2020) were as follows:

2015	$3.60
2016	3.65
2017	3.70
2018	3.85
2019	4.00
2020	4.10

What is the cost of common stock equity financing?

Reference no: EM133433789

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