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 35%, what is the firm's cost of equity?
| 10% | ||
| 6.65% | ||
| 9.0% | ||
| 5.85% |
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
12th Edition
1260772160, 978-1260772166
