Question
Coronado & Associates common stock currently trades at $70 a share. It is expected to pay an annual dividend of $2.10 a share at the
Coronado & Associates common stock currently trades at $70 a share. It is expected to pay an annual dividend of $2.10 a share at the end of the year (D 1 = $2.10), and the constant growth rate is 8.3 percent a year. What is the companys cost of common equity if all of its equity comes from retained earnings?
| a. | 11.55% | |
| b. | 14.69% | |
| c. | 3.25% | |
| d. | 3.00% | |
| e. | 11.30% |
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Managing Finance A Socially Responsible Approach
Authors: D. Crowther
1st Edition
0750661011, 978-0750661010
