> Cost of Common Stock?

Cost of Common Stock?

Posted at: 2014-12-05 
Use this formula to find cost of common stock: rs= D0 (1+g)/ P0

The cost of common stock is 5.68

Bouchard Company's stock sells for $19 per share, its last dividend (D0) was $1.00, and its growth rate is a constant 8 percent. What is its cost of common stock, rs? Express your answer in percentage (without the % sign) and round it to two decimal places.

(i.e., 12.54 for 0.1254)