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Li & Associates common stock currently trades at $60 a share. It is expected to pay an annual dividend of $1.80 a share at the
Li & Associates common stock currently trades at $60 a share. It is expected to pay an annual dividend of $1.80 a share at the end of the year (D 1 = $1.80), and the constant growth rate is 10.1 percent a year. What is the companys cost of common equity if all of its equity comes from retained earnings?
| a. | 3.30% | |
| b. | 3.00% | |
| c. | 13.10% | |
| d. | 9.17% | |
| e. | 13.40% |
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