Cost of Capital As financial manager of Cosco Pacific Limited, you have been tasked with determining your

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Cost of Capital As financial manager of Cosco Pacific Limited, you have been tasked with determining your firms cost of equity capital. The shares currently sell for HK$10.40, and the dividend per share will probably be about HK$0.05736. Your assistant argues: ‘It will cost us HK$0.05736 per share to use the shareholders money this year, so the cost of equity is only equal to 0.55 per cent’

(HK$0.05736/HK$10.40). What is wrong with this

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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