Jaynestown Corp is currently priced at 22.00 per share. They just paid their annual dividend of $1.33. They have been experiencing growth in dividends of 3.5% and expect this to continue. What is the firm's cost of equity? O 6.05% O 9.55% O 6.42%

Jaynestown Corp is currently priced at 22.00 per share. They just paid their annual dividend of $1.33. They have been experiencing growth in dividends of 3.5% and expect this to continue. What is the firm's cost of equity? O 6.05% O 9.55% O 6.42%

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

Jaynestown Corp is currently priced at 22.00 per share. They just paid
their annual dividend of $1.33. They have been experiencing growth in
dividends of 3.5% and expect this to continue. What is the firm's cost
of equity?
O 6.05%
O 9.55%
O 6.42%
O 9.76%
O 6.26%

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