Question
IPI's common stock is currently selling for $40/share. Their most recent dividend (annual) was $2.70, and is expected to grow at 5% per year indefinitely.
IPI's common stock is currently selling for $40/share. Their most recent dividend (annual) was $2.70, and is expected to grow at 5% per year indefinitely. What is IPI's cost of retained earnings?
a) 10.56%
b) 10.83%
c) 12.09%
d) 13.00%
e) 17.14%
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Corporate Finance Theory And Practice
Authors: Aswath Damodaran
2nd Edition
0471283320, 9780471283324
