Company’s dividend next year is expected to be $1.00 (D1). The stock price is $20. The company is expected to have a constant 4.25% constant growth rate in dividends. What is the company’s cost of equity? Enter your answer as a percentage rounded to 2 decimal places (e.g., enter 5.25 percent as 5.25)

Answer rating: 100% (QA)

The companys cost of equity can be calculated using the Gordon Growth Mod... View the full answer