GM has a current stock price of $89.15. If they are expected to issue a dividend of

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GM has a current stock price of $89.15. If they are expected to issue a dividend of $4.15 next year, and the dividend is projected to grow at 4.8% what is the cost of equity capital for GM?

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Contemporary Engineering Economics

ISBN: 978-0136118480

5th edition

Authors: Chan S. Park

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Posted Date: Apr 25, 2024 09:45 AM

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GM has a current stock price of $89.15. If they are expected to issue a dividend of

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Expert Answer:

To calculate the cost of equity capital for GM we can use the dividend discount model DDM which is a ... View the full answer

Contemporary Engineering Economics

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