Question
IBM company's financial information is provided below: Current Stock Price: $30.00; Expected Annual Dividend in 1-Year: $1.50 Constant Growth Rate of Earnings: 3.00%; New Equity
IBM company's financial information is provided below:
- Current Stock Price: $30.00;
- Expected Annual Dividend in 1-Year: $1.50
- Constant Growth Rate of Earnings: 3.00%;
- New Equity Flotation Cost: 7.00%
How much is IBMs cost of common equity if all of its equity comes from retained earnings?
Enter your answer in the following format: 0.1234;
Hint: Answer is between 0.072 and 0.0896
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The Commercial Real Estate Investors Handbook
Authors: Steven D. Fisher
1st Edition
1601380372, 978-1601380371
