In: Finance
11. Assume the current selling price of a firm’s stock is: $100. Using the Excel file Dividend Data, compute the firm’s cost of equity using the Gordon dividend model.
Dividend Data | |
Quarter | Dividend per share |
1 | 0.150 |
2 | 0.152 |
3 | 0.154 |
4 | 0.155 |
5 | 0.165 |
6 | 0.170 |
7 | 0.176 |
8 | 0.181 |
9 | 0.191 |
10 | 0.210 |
11 | 0.215 |
12 | 0.227 |
13 | 0.235 |
14 | 0.240 |
15 | 0.248 |
16 | 0.256 |
17 | 0.280 |
18 | 0.284 |
19 | 0.297 |
20 | 0.303 |
21 | 0.335 |
22 | 0.342 |
23 | 0.355 |
24 | 0.364 |
25 | 0.380 |
26 | 0.386 |
27 | 0.393 |
28 | 0.407 |
29 | 0.430 |
30 | 0.450 |
31 | 0.475 |
32 | 0.515 |
33 | 0.525 |
34 | 0.530 |
35 | 0.537 |
36 | 0.539 |
37 | 0.542 |
38 | 0.545 |
39 | 0.549 |
40 | 0.551 |
41 | 0.554 |
42 | 0.558 |
43 | 0.561 |
44 | 0.564 |