Business, 20.12.2019 00:31 juansebas35

Cullumber inc.’s common shares currently sell for $42 each. the firm’s management believes that its shares should really sell for $60 each. the firm just paid an annual dividend of $2 per share and management expects those dividends to increase by 5 percent per year forever (and this is common knowledge to the market).

what is the current cost of common equity for the firm? what is the appropiate cost of equity (as per firm belief)

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Cullumber inc.’s common shares currently sell for $42 each. the firm’s management believes that its...

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