Question
19. A company's stock has a beta of 0.7. The stock currently sells for $150 per share. The company just paid a dividend of $4
19. A company's stock has a beta of 0.7. The stock currently sells for $150 per share. The company just paid a dividend of $4 per share and future dividends are expected to grow at 5% per year. If the expected return on the market is 9.25%, what is the cost of equity capital for this company?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
