The Wind Rider Co. just issued a dividend of $2.10 per share on its common stock. The
Question:
The Wind Rider Co. just issued a dividend of $2.10 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely. If the stock sells for $40 a share, what is the company’s cost of equity?
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To calculate the cost of equity using the Gordon Growth Model als...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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