Intro Luna Lemon has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 8% forever. Its stock price is $35.5. Part 1 What is Luna Lemon's cost of equity? 3+ decimals

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Intro
Luna Lemon has just paid an annual dividend of $0.45
per share. Analysts expect the firm's dividends to grow
by 8% forever. Its stock price is $35.5.
Part 1
What is Luna Lemon's cost of equity?
3+ decimals
Submit
Transcribed Image Text:Intro Luna Lemon has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 8% forever. Its stock price is $35.5. Part 1 What is Luna Lemon's cost of equity? 3+ decimals Submit
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