Question
Suppose that your company is expected to pay a dividend of $1.50 per share next year. There has been a steady growth in dividends of
Suppose that your company is expected to pay a dividend of $1.50 per share next year. There has been a steady growth in dividends of 4% per year and the market expects that to continue. The current price is $20. What is the cost of equity?
| A. | 11.5% | |
| B. | 11.8% | |
| C. | 4% | |
| D. | Need more information.
|
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Handbook Of Financial Econometrics
Authors: Yacine Ait-Sahalia, Lars Peter Hansen
1st Edition
044450897X, 978-0444508973
