Suppose Hornsby Ltd. just issued a dividend of $2.61 per share on its common stock. The company paid dividends of $2.11, $2.18, $2.35, and $2.45 per share in the last four years. If the stock currently sells for $80, what is your best estimate of the companyâs cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity Arithmetic dividend growth rate % Geometric dividend growth rate %
Suppose Hornsby Ltd. just issued a dividend of $2.61 per share on its common stock. The company paid dividends of $2.11, $2.18, $2.35, and $2.45 per share in the last four years. If the stock currently sells for $80, what is your best estimate of the companyâs cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity Arithmetic dividend growth rate % Geometric dividend growth rate %
Related questions
Suppose Hornsby Ltd. just issued a dividend of $2.47 per share on its common stock. The company paid dividends of $1.97, $2.04, $2.21, and $2.31 per share in the last four years.
If the stock currently sells for $66, what is your best estimate of the companyâs cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
| Cost of equity | |
| Arithmetic dividend growth rate | % |
| Geometric dividend growth rate | % |
Suppose Hornsby Ltd. just issued a dividend of $2.47 per share on its common stock. The company paid dividends of $1.97, $2.04, $2.21, and $2.31 per share in the last four years.
If the stock currently sells for $66, what is your best estimate of the companyâs cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
| Cost of equity | |
| Arithmetic dividend growth rate | % |
| Geometric dividend growth rate | % |
Suppose Hornsby Ltd. just issued a dividend of $2.53 per share on its common stock. The company paid dividends of $2.03, $2.10, $2.27, and $2.37 per share in the last four years.
If the stock currently sells for $72, what is your best estimate of the companyâs cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
| Cost of equity | |
| Arithmetic dividend growth rate | % |
| Geometric dividend growth rate | % |
