The firm is expected to pay a dividend of 175 one year from


Oasis, Inc., has common shares with a price of $21.12 per share. The firm is expected to pay a dividend of $1.75 one year from today, and dividends are expected to grow at 10 percent for two years after that and then at 5 percent thereafter. What is the implied cost of common equity capital for Oasis?

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Finance Basics: The firm is expected to pay a dividend of 175 one year from
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