Question
IBM expects to pay a dividend of $8 next year and expects these dividends to grow at 4.17% a year. The price of IBM is
IBM expects to pay a dividend of $8 next year and expects these dividends to grow at 4.17% a year. The price of IBM is $74 per share. What is IBM's cost of equity capital? (The answer on my screen is 12.13 - That is the format. No $ sign, no % sign. It is just 12.13 - Your answer will be different, but that is the format. ) Round your answer to 2 decimal places.
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
