Question
fin101 Assume a firm that pays a dividend of $2.1 one year from today, the growth rate dividend is expected to be 7.4 percent forever,
fin101
Assume a firm that pays a dividend of $2.1 one year from today, the growth rate dividend is expected to be 7.4 percent forever, then what is the cost of equity capital if the price of its common shares is currently $45?
| a. | 12% | |
| b. | 10% | |
| c. | 11% | |
| d. | 9% |
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Investments An Introduction
Authors: Herbert B. Mayo
13th Edition
0357127951, 978-0357127957
