Editing Safran SA (section)

==== Inverse problem ====
In this section, our objective is to calculate the necessary growth rate of Safran's stock to achieve its market value, assuming market efficiency. To achieve this, we will simply reverse the GGM formula to derive the cost of equity.
{| class="wikitable"
|
|Inverse problem
|-
!Market value per share
|144.82 €
|-
!Expected  dividend per share
|1.37 €
|-
!Dividend  growth rate 
|1.70%
|-
!Cost of equity 
|'''2.64%'''
|}
The cost of equity of 2.64% for Safran represents the expected return or required rate of return that investors demand for holding the company's stock. A low cost of equity, such as 2.64%, indicates that investors perceive Safran as a relatively safe and stable investment.