There has been a steady growth in dividends of 4 per year, Financial Management

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There has been a steady growth in dividends of 4 per year

Answer the following Question

Suppose that your company is expected to pay a dividend of $1.50 per share next year.

There has been a steady growth in dividends of 4% per year and the market expects that to continue. The current price is $20. What is the cost of equity?

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Financial Management: There has been a steady growth in dividends of 4 per year

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Financial Management: There has been a steady growth in dividends of 4 per year

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