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A company has 8 million shares of common stock selling at $40 a share. It pays a dividend of $6 this year and the dividend

A company has 8 million shares of common stock selling at $40 a share. It pays a dividend of $6 this year and the dividend is growing at 8% annually.

According to the Dividend Discount Model (DDM), what is the cost of equity?

Select a Choice Below

current question choices

OptionA

24.2%

OptionB

23.0%

OptionC

16.2%

OptionD

15.0%

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