Please give me correct answer this financial accounting question The future earnings, dividends, and common stock price of Axentron DigitalInc. are expected to grow at 6.5% per year. Axentron's common stock iscurrently trading at $32.00 per share. Its most recent dividend was $2.20,and it is expected to pay a dividend of $2.34 at the end of the current year.If the firm's bonds yield 9.2%, use the bond-yield-plus-risk-premiumapproach to calculate the cost of equity (rs), assuming a risk premium of4.5%.Round your final answer to two decimal places.

Step 1: Definition of Cost of Equity (rs)Cost of Equity (rs) refers to the rate of return required…

Answered: The future earnings, dividends, and…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

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ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 12P

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