Question
A firm has common stock with a market price of $45 per share and an expected dividend of $3 per share at the end of
A firm has common stock with a market price of $45 per share and an expected dividend of $3 per share at the end of the coming year. The growth rate in dividends has been 4%. The cost of the firms common stock equity is .
A) 9.75%
B) 10.67%
C) 8.42%
D) 11.25%
Please show work.
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Finance
Authors: Angelico Groppelli, Ehsan Nikbakht
2nd Edition
0812043731, 978-0812043730
