A. Judy's Boutique just paid an annual dividend of $3.61 on its common stock. The firm increases its dividend by 3.50 percent annually. What is the company's cost of equity if the current stock price is $43.48 per share? A.12.09% B.11.47% C.11.15% D.12.52%   B.Countess Corporation is expected to pay an annual dividend of $4.45 on its common stock in one year. The current stock price is $72.55 per share. The company announced that it will increase its dividend by 3.60 percent annually. What is the company's cost of equity? A.9.19% B.10.32% C.9.46% D.9.73%   C.The stock in Bowie Enterprises has a beta of 1.24. The expected return on the market is 11.20 percent and the risk-free rate is 2.82 percent. What is the required return on the company's stock? A.14.96% B.13.21% C.12.84% D.16.71%

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
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A. Judy's Boutique just paid an annual dividend of $3.61 on its common stock. The firm increases its dividend by 3.50 percent annually. What is the company's cost of equity if the current stock price is $43.48 per share?

A.12.09%

B.11.47%

C.11.15%

D.12.52%

 

B.Countess Corporation is expected to pay an annual dividend of $4.45 on its common stock in one year. The current stock price is $72.55 per share. The company announced that it will increase its dividend by 3.60 percent annually. What is the company's cost of equity?

A.9.19%

B.10.32%

C.9.46%

D.9.73%

 

C.The stock in Bowie Enterprises has a beta of 1.24. The expected return on the market is 11.20 percent and the risk-free rate is 2.82 percent. What is the required return on the company's stock?

A.14.96%

B.13.21%

C.12.84%

D.16.71%

 
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