Question
A firm that is expected to pay $3 dividends next year, the dividends are expected to grow at a constant rate of 3% per year,
A firm that is expected to pay $3 dividends next year, the dividends are expected to grow at a constant rate of 3% per year, and the current price of the firm's shares is $60. Assume the after-tax cost of debt is 2%. Find the cost of equity.
Question 18 options:
|
| 7% |
|
| 8% |
|
| 9% |
|
| 10% |
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis C. Gapenski
2nd Edition
1567931650, 978-1567931655
