Just need some help on this one problem.
Calculating Cost of Equity. A company just issued a dividend of $2.30 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $42 a share, what is the company's cost of equity?
The answer contains the computation of cost of equity when dividend per share, market value per share and growth rate are given