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Kinston Nielson Motors has a share price of $25 today. If Nielson Motors is expected to pay a dividend of $0.75 this year, and its
Kinston Nielson Motors has a share price of $25 today. If Nielson Motors is expected to pay a dividend of $0.75 this year, and its stock price is expected to grow to $26.75 at the end of the year, then Nielson's dividend yield and equity cost of capital are:
| a. | 3.0% and 7.0% respectively. | |
| b. | 4.0% and 6.0% respectively. | |
| c. | 3.0% and 10.0% respectively. | |
| d. | None of the answers are correct. | |
| e. | 4.0% and 10.0% respectively. |
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