Company cost of equity


Problem:

The Muse Co. just issued a dividend of $2.65 per share on its common stock. The company is expected to maintain a constant 5.50 percent growth rate in its dividends indefinitely.

Required:

Question: If the stock sells for $53 a share, what is the company's cost of equity? Explain in detail.

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Finance Basics: Company cost of equity
Reference No:- TGS0876193

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