Question: hapter 13 assignment 4. value 10.00 points Suppose Found Ltd just issued a dividend of 1.43 per share on its equity. The company paid dividends
hapter 13 assignment 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 105, 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 (eg,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 111.46 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 % References
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