AFrican Queen toursinc has capitalized on the renewed interest in riverboat travel. Charlie Allnut, the lone financial analyst estimated the firms earning,dividens, and stock price will continue to grow at he historical 5 percent rate. AQRTs common stock is currently selling for $30 per share. The dividend just paid was $2. The pay dividends every year. The rate o freturn expected on the overall stock market is 12 percent. Waht is AQRTS cost of equity? If they issue

Answer rating: 100% (QA)

Answer i As the dividends are expected to grow at a constant rate the constant dividend gro... View the full answer