Question
Chelsea Fashions is expected to pay an annual dividend of $4 a share next year. The market price of the stock is $90 per share,
Chelsea Fashions is expected to pay an annual dividend of $4 a share next year. The market price of the stock is $90 per share, and the growth rate of dividend is expected to be 7% for foreseeable future. What is the firm's cost of equity as per the DDM?
| A. 7.58% | ||
| B. 7.91% | ||
| C. 8.24% | ||
| D. 11.44% |
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
