Carla Vista Tire Co. just paid an annual dividend of $1.20 on its common shares. If...

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Carla Vista Tire Co. just paid an annual dividend of $1.20 on its common shares. If Carla Vista is expected to increase its annual dividend by 5.1 percent per year into the foreseeable future and the current price of Carla Vista's common shares is $20.65, what is the cost of common stock for Carla Vista? (Round intermediate calculations to 4 decimal places, e.g. 0.1555 and final answer to 2 decimal places, e.g. 15.25%.) Cost of common stock 10.90 % Carla Vista Tire Co. just paid an annual dividend of $1.20 on its common shares. If Carla Vista is expected to increase its annual dividend by 5.1 percent per year into the foreseeable future and the current price of Carla Vista's common shares is $20.65, what is the cost of common stock for Carla Vista? (Round intermediate calculations to 4 decimal places, e.g. 0.1555 and final answer to 2 decimal places, e.g. 15.25%.) Cost of common stock 10.90 %

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Answer The cost of common stock for Carla Vista can be calculated using the constant growth dividend ... View the full answer