The dividend of Onogo Inc. is currently $2 per share and is supposed to grow at 5
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The dividend of Onogo Inc. is currently $2 per share and is supposed to grow at 5 percent a year forever. Its share price is $50. Its beta is 1.08. The market risk premium is 5 percent and the risk-free rate is 4 percent. What is your best estimate of Onogo’s cost of equity?
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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According to the dividend discount model with constant growth expectations i...View the full answer
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Related Book For 
Finance for Executives Managing for Value Creation
ISBN: 978-0538751346
4th edition
Authors: Gabriel Hawawini, Claude Viallet
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