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Lo Tech Co. - cost of equity - 2 Dec, 2012

Calculating Cost of Equity.

The Lo Tech Co. just issued a dividend of $2.20 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $43 a share, what is the company's cost of equity?



Category : Financial Management

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Lo , Tech , Cost , Equity , Dividend , Growth , Constant 


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Answer  - 2 Dec, 2012
Using the dividend discount model Cost of equity = D1/P0 + g where D1 = ....


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