Question: Corporate finance ( chapter.8 problems . chapter name. creating value through required return per Share. 4. Zosnick Poultry Corporation has launched an expansion program that,

Corporate finance ( chapter.8 problems . chapter name. creating value through required return

per Share. 4. Zosnick Poultry Corporation has launched an expansion program that, in 6 years, should result in the saturation of the Bay Area marketing region of Cali- fornia. As a result, the company is predicting a growth in earnings of 12 per- cent for 3 years, 6 percent for years 4 through 6, then constant earnings for the foreseeable future. The company expects to increase its dividend per share, now $2, in keeping with this growth pattern. Currently, the market price of the stock is $25 per share. Estimate the company's cost of equity capital. SSI

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