Question
IBM just paid a dividend of $2.5 and expects these dividends to grow at 8% a year. The price of IBM is $90 per share.
IBM just paid a dividend of $2.5 and expects these dividends to grow at 8% a year. The price of IBM is $90 per share. What isIBM's cost of equitycapital?
A.
3.3%
B.
10.45%
C.
8%
D.
11%
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
