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You were recently hired by Schuster Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $115.00; g
You were recently hired by Schuster Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $115.00; g = 7.00% (constant). Using the Gordon Model, what is the cost of equity? Do not round your intermediate calculations. Round your final answer to 2 decimal places.
| a. | 8.50% | |
| b. | 8.51% | |
| c. | 8.52% | |
| d. | 8.53% | |
| e. | 8.54% |
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