Question
The common stock of the company has the market price of $36 per share and expected dividend of $3 per share with 5% annual growth.
The common stock of the company has the market price of $36 per share and expected dividend of $3 per share with 5% annual growth. The standard tax rate for the company is 25%.
A. Calculate before tax cost of common stock.
B. Calculate the after tax cost of common stock.
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
