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Suppose that your company expected to pay a dividend of

Question : Suppose that your company expected to pay a dividend of : 5076

Suppose that your company is expected to pay a dividend of $1.50 per share next year. There has been a steady growth in dividends of 4% per year and the market expects that to continue. The current price is $20. What is the cost of equity?

11.5%

11.8%

4%

Need more information.

A.

11.5%

 

 

B.

11.8%

 

C.

4%

 

D.

Need more information.

     

 

Solution
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Economics 1 Year Ago 112 Views
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