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The following financial information is available on Nicole Seamans Company: Current per share market price$48.00 Current (t = 0) per share dividend$3.50 Expected long-term growth
The following financial information is available on Nicole Seamans Company:
Current per share market price$48.00
Current (t = 0) per share dividend$3.50
Expected long-term growth rate5.0%
Seamans can issue new common stock to net the company $44 per share. Determine the cost of internal equity capital using the dividend capitalization model approach. (Compute answer to the nearest 0.1%). (Points : 3)
12.3%
13.4%
13.0%
12.7%
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