Bouchard Companys stock sells for 21 per share its last divi

Bouchard Company\'s stock sells for $21 per share, its last dividend (Do) was $1.00, and its growth rate is a constant 7 percent. What is its cost of common stock, rs? Express your answer in percentage (without the % sign) and round it to two decimal places. (ie., 12.54 for 0.1254)

Solution

cost of common stock for the company = 1*1.07/21 + 7%

cost of common stock for the company = 12.10%