Question
Cost of retained earnings. Suppose next year's dividend is $1.50. Current price of common stock is $29.41. Constant dividend growth rate is 5%. What is
Cost of retained earnings. Suppose next year's dividend is $1.50. Current price of common stock is $29.41. Constant dividend growth rate is 5%. What is the cost of retained earnings?
Answers:
A) 10.36%
B) 9.89%
C) 10.98%
D) 10.10%
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
