Question
Anle Corporation has a current stock price of $22.59 and is expected to pay a dividend of $1.00 in one year. Its expected stock price
Anle Corporation has a current stock price of $22.59 and is expected to pay a dividend of $1.00 in one year. Its expected stock price right after paying that dividend is $24.66.
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?
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Behavioral Finance And Asset Prices
Authors: David Bourghelle, Pascal Grandin, Fredj Jawadi, Philippe Rozin
1st Edition
3031244850, 978-3031244858
