A company just paid a $3.00 dividend, expected to grow at 1.8% indefinitely. If the firm's stock can be sold for $19.25 per share with a $1.00 flotation, what is the cost of common equity? 15.81% O14.42% 25.75% O13.28% Onone of these

A company just paid a $3.00 dividend, expected to grow at 1.8% indefinitely. If the firm's stock can be sold for $19.25 per share with a $1.00 flotation, what is the cost of common equity? 15.81% O14.42% 25.75% O13.28% Onone of these

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A company just paid a $3.00 dividend, expected to grow at 1.8% indefinitely. If the firm's stock can be sold for $19.25 per share with a $1.00
flotation, what is the cost of common equity?
15.81%
014.42%
025.75%
013.28%
Onone of these

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