Question
In 2003, XYX. Corp. distributed $2,746 million by dividends and $872 million by share repurchases to shareholders. In 2018, the dividends and share repurchases have
In 2003, XYX. Corp. distributed $2,746 million by dividends and $872 million by share repurchases to shareholders. In 2018, the dividends and share repurchases have increased to $9,492 million and $4,919 million, respectively. We know XYX. Corp. has 2,662 million shares outstanding at $121 per share. What is the cost of equity for XYZ. Corp. based on the Gordon Model that accounts for all cash flows to equity?
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Financial Accounting
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
5th edition
978-1259914898
