Question
7) A company is expected to pay a dividend of $1.90 next year. Dividends are expected to grow at a constant rate of 3% per
7) A company is expected to pay a dividend of $1.90 next year. Dividends are expected to grow at a constant rate of 3% per year, and the stock price is currently $12.50. The company's marginal tax rate is a very low 15%. Compute the cost of internal equity (round your answer to two decimal places).
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
