Question
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,
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 40%. Compute the cost of internal equity (retained earnings).
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Financial Management For Public Health And Not For Profit Organization
Authors: Steven A. Finkler
3rd International Edition
0138152772, 9780138152772
