Question
A company has just declared a dividend of 39.25p per share. If the expected growth in future dividends is 7% pa in perpetuity and the
A company has just declared a dividend of 39.25p per share. If the expected growth in future dividends is 7% pa in perpetuity and the market price of the company's ordinary shares is 879.25p (cum div), the estimated annual cost of equity capital is
| A. | 12.0% | |
| B. | 11.5% | |
| C. | 11.7% | |
| D. | 11.8% |
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Entrepreneurial Finance
Authors: M. J. Alhabeeb
1st Edition
1118691512, 978-1118691519
