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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
4.       Estimating the DCF Growth Rate   Suppose In a Found, Ltd., just issued a dividend of $1.69 per share on its common stock. The company paid dividends of $1.35, $1.43, $1.50, and $1.61 per share in the last four years. If the stock currently sells for $50, what is your best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends? What if you use the geometric average growth rate?
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