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Intro Alberta Oilsands Inc. has a share price of $34 and an expected EPS of $7 next year. The company currently pays out 100% of
Intro Alberta Oilsands Inc. has a share price of $34 and an expected EPS of $7 next year. The company currently pays out 100% of earnings as dividends, but is considering a new policy of paying out just 60% of dividends. Retained earnings are expected to earn a return of 5.8%. Attempt 1/10 for 10 pts. Part 1 What is the cost of equity? 3+ decimals Submit Attempt 1/10 for 10 pts. Part 2 What will be the next dividend under the new policy? 2+ decimals Submit Part 3 Attempt 1/10 for 10 pts. What will be the growth rates of earnings and dividends under the new policy? 4+ decimals Submit Attempt 1/10 for 10 pts. Part 4 What will be the share price under the new policy? 1+ decimals Submit
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