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Cost of common stock: Seerex Wok Co. is expected t...

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Cost of common stock: Seerex Wok Co. is expected to pay a dividend of $1.10 one year from today on its common shares. That dividend is expected to increase by 5 percent every year thereafter. If the price of Seerex is $13.75, then what is Seerex?s cost of common equity? (Omit the percent sign in your answer. Carry out all calculations to four decimal places and round your final answer to two decimal places, for example 7.80%.) Cost of common equity = %

 

Paper#3787 | Written in 18-Jul-2015

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