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Common Stock Dividend

December 3rd, 2010 Leave a comment Go to comments

Common Stock Dividend
Income, dividends and common stock price of Carpettes Technologies Inc.?

Income, dividends and common stock price of Carpettes Technologies Inc. is expected to grow at 7 percent per year in the future. Carpettes's common stock sold for $ 23 per share, its last dividend was $ 2.00, and will pay a dividend of $ 2.14 at the end of the year. Assuming you have equal confidence in the inputs used for the three approaches, what is your estimate Carpettes cost of common stock?

$ 30.57

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