Question
An analyst gathers the following information: The beta coefficient for OTX Ltd is 1.55. The company has just paid a $0.71 dividend per ordinary share.
An analyst gathers the following information:
The beta coefficient for OTX Ltd is 1.55. The company has just paid a $0.71 dividend per ordinary share. The dividend is expected to grow at 7% forever. The ordinary share of the company is currently traded in the market at $9.79 per share. The risk-free rate is 4.35%. Use only relevant information and applicable method to find the cost of OTX ordinary share.
(Round the final answer to two decimal places. If your answer is 12.34%, write only 12.34; do NOT write 0.1234)
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
3rd edition
77639731, 978-0077639730
