Determining cost of common equity capital for firm


Two-Stage Rocket paid an annual dividend of $1.55 yesterday, and it is commonly known that the firm's management expects to increase its dividend by 11.30 percent for the next two years and by 2 percent thereafter. If the current price of Two-Stage's common stock is $16.97, what is the cost of common equity capital for the firm?

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Finance Basics: Determining cost of common equity capital for firm
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