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Mathematics, 31.12.2020 03:50 deidaralove90

Suppose Stark Ltd. just issued a dividend of $2.57 per share on its common stock. The company paid dividends of $2.20, $2.31, $2.38, and $2.49 per share in the last four years. a.
If the stock currently sells for $65, what is your best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends?

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