Question
Rebel Restaurant pays a current dividend of $1.50 per share (d 0 ). Dividends are expected to grow at a 4% rate for the foreseeable
Rebel Restaurant pays a current dividend of $1.50 per share (d0). Dividends are expected to grow at a 4% rate for the foreseeable future.
The restaurant's common stock is selling for $18 per share and issuance costs are $3 per share.
What is the restaurant's cost of external equity?
Group of answer choices
14.40%
14.00%
12.67%
12.33%
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077647094
