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Anle Corporation has a current stock price of $15.76 and is expected to pay a dividend of $1.05 in one year. Its expected stock price
Anle Corporation has a current stock price of $15.76 and is expected to pay a dividend of $1.05 in one year. Its expected stock price right after paying that divide. $17.80.
a. What is Anle's equity cost of capital?
b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain? ..... (Round to two decimal places.)
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