Question
Ivanhoe Inc.'s common shares currently sell for $36 each. The firm's management believes that its shares should really sell for $50 each. If the
Ivanhoe Inc.'s common shares currently sell for $36 each. The firm's management believes that its shares should really sell for $50 each. If the firm just paid an annual dividend of $2 per share and management expects those dividends to increase by 8 percent per year forever (and this is common knowledge to the market). Problem 13.20 a1-a2 (Solution Video)(a1) What is the current cost of common equity for the firm? (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25%.) The current cost of common equity for the firm %
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