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View Full Version : What is the cost of equity as per the constant dividend growth model?


sandy98
Mar 3, 2012, 11:53 PM
The earnings available for equity shareholders Rs.50 Lakhs and there are 1 lakh equity shares of the company. It is expected that dividend of 40% of the earnings per share will be paid by the company to its shareholders. The price of the share as on today is Rs.200 and the expected growth rate in dividends is 10%.