Question: Estimate the DCF Growth Rate suppose in a snap Ltd, just issued a dividend of $1.25 per share on its common stock. The company paid

Estimate the DCF Growth Rate suppose in a snap Ltd, just issued a dividend of $1.25 per share on its common stock. The company paid dividends of $.85, $.90, $1.04, and $1.10 per share in the last four years. If the stock currently sells of $45, what is your best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends? What if you use the geometric average growth rate?

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