Suppose Potter Ltd. just issued a dividend of $1.82 per share on its common stock. The...

Suppose Potter Ltd. just issued a dividend of $1.82 per share on its common stock. The company paid dividends of $1.36, $1.46, $1.53, and $1.68 per share in the last four years, respectively. If the stock currently sells for $55, what is your best estimate of the company’s cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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jeff jeffy answered 15 hours ago

Suppose Potter Ltd. just issued a dividend of $2.51 per share on its common stock. The...

Suppose Potter Ltd. just issued a dividend of $2.51 per share on its common stock. The company paid dividends of $2.01, $2.08, $2.25, and $2.35 per share in the last four years. What was the dividend growth rate for each year? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) What were the arithmetic average and geometric average dividend growth rates over the past four years? (Do not round intermediate...

Suppose Potter Ltd. just issued a dividend of $2.50 per share on its common stock. The...

Suppose Potter Ltd. just issued a dividend of $2.50 per share on its common stock. The company paid dividends of $2.00, $2.07, $2.24, and $2.34 per share in the last four years. If the stock currently sells for $69, what is your best estimate of the company’s cost of equity capital using arithmetic and geometric growth rates?

Suppose Powers Ltd. just issued a dividend of $2.55 per share on its common stock. The...

Suppose Powers Ltd. just issued a dividend of $2.55 per share on its common stock. The company paid dividends of $2.05, $2.12, $2.29, and $2.39 per share in the last four years. Required: What was the dividend growth rate for each year? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Growth rate Year 1 % Year 2 % Year 3 % Year 4 % What were the arithmetic and...

Suppose Hornsby Ltd. just issued a dividend of $2.55 per share on its common stock. The...

Suppose Hornsby Ltd. just issued a dividend of $2.55 per share on its common stock. The company paid dividends of $2.05, $2.12, $2.29, and $2.39 per share in the last four years. What was the dividend growth rate for each year? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Growth rate Year 1 % Year 2 % Year 3 % Year 4 % What were the arithmetic and geometric...

Suppose Hornsby Ltd. just issued a dividend of $2.48 per share on its common stock. The...

Suppose Hornsby Ltd. just issued a dividend of $2.48 per share on its common stock. The company paid dividends of $1.98, $2.05, $2.22, and $2.32 per share in the last four years. If the stock currently sells for $67, what is your best estimate of the company’s cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity...

part A The Drogon Co. just issued a dividend of $2.51 per share on its common...

part A The Drogon Co. just issued a dividend of $2.51 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely. If the stock sells for $60 a share, what is the company's cost of equity? Part B Lannister Manufacturing has a target debt-equity ratio of 0.65. Its cost of equity is 16 percent, and its cost of debt is 12 percent. If the tax rate is 35...

Company XYZ common stock just paid a dividend of $2.00 per share and its dividend is...

Company XYZ common stock just paid a dividend of $2.00 per share and its dividend is expected to grow at 10 percent per year for three years and then grow at 4 percent per year forever. XYZ stocks have a 13 percent required return. You should you be willing to pay?

XYZ Corp. just paid an annual dividend of $3 per share on its common stock. This...

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HIJ Ltd. has just issued a dividend of $1.25 per share on their ordinary shares that...

HIJ Ltd. has just issued a dividend of $1.25 per share on their ordinary shares that have a face value of $1.00. Dividends have been increasing at a rate of 4%pa and this trend is expected to continue for another year. After that the growth rate is expected to be 6%pa for three years before settling down into the long term growth rate of 5%pa. If the market requires a return of 12%pa on these shares: i. What is their...

A company has just paid out a per-share dividend of $5.15 on its common stock. Analysts...

A company has just paid out a per-share dividend of $5.15 on its common stock. Analysts expect that these per-shares dividends will grow at a rapid rate of 16% over the coming 6 years, after which the rate of growth in per-share dividends will decline to 4.5%. It is estimated that investors requite a return of 13% on this stock. Each share of this stock should be selling for

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