You are an owner of a car wash, and you meet with other neighborhood car wash owners. Consider that trips through the car wash a
1 answer:
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Answer:
cost of equity = 12.16 %
Explanation:
given data
annual dividend of $3.73
increases dividend = 3.40 percent annually
stock price = $43.96 per share
to find out
What is the company's cost of equity
solution
we will use here Gordon model for compute company's cost of equity that is
market value = ........................1
put here value we get
43.96 =
solve it we get
cost of equity = 0.121735
cost of equity = 12.16 %