Question
ABC Inc wants to estimate its cost of equity using DDM (dividend discount model). The data is as follows: Do = $7; Po = $90;
ABC Inc wants to estimate its cost of equity using DDM (dividend discount model). The data is as follows: Do = $7; Po = $90; and g = 4.00% (constant). Based on the DDM with constant growth approach, what is the cost of common equity of ABC Inc.
12.09%
10.50%
8.43%
13.43%
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
