Question
Using the constant growth model, a firm's expected dividend yield ( D 1 ) is 4% of the stock price, and its growth rate is
Using the constant growth model, a firm's expected dividend yield (D1) is 4% of the stock price, and its growth rate is 5%. If the tax rate is 21%, what is the firm's cost of equity?
Multiple Choice
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10%
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6.65%
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9.0%
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5.85%
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Cryptocurrency And Public Policy
Authors: Donavon Johnson
1st Edition
1032311231, 978-1032311234
