Question
ABC Corporation hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1= $4.32;
ABC Corporation hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1= $4.32; P0= $39.40; and g = 5.20% (constant). Based on the DCF approach, What is the cost of stock rs? Show your work.
a.15.38%
b. 13.11%
c.17.23%
d. 14.42%
e. 16.16%
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Essentials Of Real Estate Finance
Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
