Question
Investors in IBM common stock expect the firm to pay a dividend next year of $1.92 per share. Investors also expect these dividends to grow
Investors in IBM common stock expect the firm to pay a dividend next year of
$1.92
per share. Investors also expect these dividends to grow at a rate of
7%
per year. The price of IBM common stock is currently
$80
per share. Based on thisinformation, IBMs current cost of common equity capital is closest to which of the following?
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Personal Finance
Authors: Jeff Madura
3rd Edition
0321357973, 978-0321357977
