BA350 Financial Management: 10-5 Summerdahl Resorts’ common stock is currently trading
BA350 Financial Management
10-5 Cost of Equity: DCF Summerdahl Resorts’ common stock is currently trading at $36 a share. The stock is expected to pay a dividend of $3.00 a share at the end of the year (D1 _ $3.00), and the dividend is expected to grow at a constant rate of 5% a year. What is the cost of common equity?