You are an external financial analyst evaluating the merits of a stock Since you are using a dividend discount model approach to evaluate a cost of equity capital, you need to estimate the dividend growth rate for the firm in the future Describe how you might go about doing this ...

One source for this data would be to measure the firms dividend growth ra ...

You are an external financial analyst evaluating the merits of a stock. Since you are using a

Question:

You are an external financial analyst evaluating the merits of a stock. Since you are using a discount model approach to evaluate a capital, you need to estimate the growth rate for the firm in the future. Describe how you might go about doing this.

Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the... Dividend
A 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...