Question
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
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) 3.0% and 10.0% respectively. | ||
| C) 4.0% and 6.0% respectively.
| ||
| D) 4.0% and 10.0% respectively. |
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The New Public Finance
Authors: Inge Kaul, Pedro Condeicao
1st Edition
0195179978, 978-0195179972
