Calculate the annual growth rate of the dividends. 2. Identify the variables in the constant growth model
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Question:
Calculate the annual growth rate of the dividends.
2. Identify the variables in the constant growth model with the E(Re): D1, P0, g (use year-end 2020 for P0).
3. Compute the cost of equity
Year | Annual Dividends | Growth Rate |
2016 | 0.56 | |
2017 | 0.62 | 10.31% |
2018 | 0.71 | 14.63% |
2019 | 0.76 | 7.80% |
2020 | 0.81 | 6.25% |
Total | 2.89 | 9.75% |
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