Question
You were recently hired by Garrett Design, Inc. to estimate its cost of common equity. You obtained the following data: D 1 = $1.75; P
You were recently hired by Garrett Design, Inc. to estimate its cost of common equity. You obtained the following data: D1 = $1.75; P0 = $42.50; gL = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?
|
| a. | 10.77% |
|
| b. | 11.33% |
|
| c. | 11.90% |
|
| d. | 12.50% |
|
| e. | 13.12% |
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Financial Management For Decision Makers
Authors: Peter Atrill
8th Edition
129213433X, 978-1292134338
