Question
DEF Company's current share price is $16 and it is expected to pay a $0.55 dividend per share next year. After that, the firm's dividends
DEF Company's current share price is $16 and it is expected to pay a $0.55 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 3.7% per year.
What is an estimate of DEF Company's cost of equity? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include a percent sign in your answer.
Enter your response below.
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Financial Management
Authors: I.M. Pandey
11th Edition
9325982293, 978-9325982291
