What is best estimate of cost of equity capital using the


Company issues a dividend of 1.92 per share on its common stock. The company paid dividends of 1.50; 1.65' 1.72; and 1.83 per share in the last four years. Stock currently sells for $40 dollars. What is best estimate of cost of equity capital using the arithmetic average growth rate in dividends?

What is the cost of equity using the geometric average growth rate?

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