Suppose Tom Ltd issued

$3.00

Suppose Tom Ltd issued
(TCO 4) Suppose Tom, Ltd. just issued a dividend of $2.00 per share on its…

 

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Suppose Tom Ltd issued

Suppose Tom Ltd issued

BUSN 379 Final Exam A+

(TCO 4) Suppose Tom, Ltd. just issued a dividend of $2.00 per share on its common stock. The company’s dividends have been growing at a rate of 7%. If the stock currently sells for $50.00, what is your best estimate of the company’s cost of equity? (Show your work.) (Points : 20)
Cost of  equity= g + Current annual dividends (1+g)….