Question
(One period stock pricing.) Nick's Marine Company (NMC) currently has a stock price per share of $55. If NMC's cost of equity capital (the discount
(One period stock pricing.) Nick's Marine Company (NMC) currently has a stock price per share of $55. If NMC's cost of equity capital (the discount rate for equity) is 13.6% and capital gains rate (gain/loss in prices relative to today's price) for the next year is expected to be 10.7%, the dividend in the upcoming year (t = 1) should be?
A) $7.48
B) $5.88
C) $1.60
D) $5.20
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Finance And Economics Readings Selected Papers From Asia Pacific Conference On Economics And Finance 2017
Authors: Lee-Ming Tan , Evan Lau Poh Hock, Chor Foon Tang
1st Edition
9811081468,9811081476
