Question: 4. value 10.00 points Suppose Found Ltd. just issued a dividend of 1.43 per share on its equity. The company paid dividends of 1.05, 1.12,
4. value 10.00 points Suppose Found Ltd. just issued a dividend of 1.43 per share on its equity. The company paid dividends of 1.05, 1.12, 1.19, and 1,30 per share in the last 4 years. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Requirement 1: If the equity currently sells for 45, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? Cost of equity 11.46 % Requirement 2: If the equity currently sells for 45, what is your best estimate of the company's cost of equity capital using the geometric average growth rate in dividends? Cost of equity 11.46 %
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