Krell Industries has a share price of $21.02 today. If Krell is expected to pay a dividend of $0.79 this year and its stock price is expected to grow to $23.73 at the end of the year, what is Krell's dividend yield and equity cost of capital? The dividend yield is %. (Round to two decimal places.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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Krell Industries has a share price of $21.02 today. If Krell is expected to pay a dividend of $0.79 this year and its stock price is expected to grow to $23.73 at
the end of the year, what is Krell's dividend yield and equity cost of capital?
The dividend yield is %. (Round to two decimal places.)
Transcribed Image Text:Krell Industries has a share price of $21.02 today. If Krell is expected to pay a dividend of $0.79 this year and its stock price is expected to grow to $23.73 at the end of the year, what is Krell's dividend yield and equity cost of capital? The dividend yield is %. (Round to two decimal places.)
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