Question
Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D 0 =
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Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.90; P0 = $30.00; and g = 7.00% (constant). Based on the CDG model approach, what is the after-tax cost of equity for Kish Inc. (tax rate is 40%)?
6.13%
7.66%
11.33%
8.37%
10.21%
Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.90; P0 = $30.00; and g = 7.00% (constant). Based on the CDG model approach, what is the after-tax cost of equity for Kish Inc. (tax rate is 40%)?
| 6.13% | ||
| 7.66% | ||
| 11.33% | ||
| 8.37% | ||
| 10.21% |
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Ecological Money And Finance
Authors: Thomas Lagoarde-Segot
1st Edition
3031142314, 978-3031142314
