Krell Industries has a share price of $21.35 today. If Krell is expected to pay a dividend of $ 0.61 this year, and its stock price is expected to grow to $ 23.08 at the end of the year, what is Krell's equity cost of capital? O 16.3% ○ 9.6% O 11.0% O 12.0%
Krell Industries has a share price of $21.35 today. If Krell is expected to pay a dividend of $ 0.61 this year, and its stock price is expected to grow to $ 23.08 at the end of the year, what is Krell's equity cost of capital? O 16.3% ○ 9.6% O 11.0% O 12.0%
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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![Krell Industries has a share price of $21.35 today. If Krell is expected to pay a dividend of $
0.61 this year, and its stock price is expected to grow to $ 23.08 at the end of the year, what
is Krell's equity cost of capital?
16.3%
9.6%
O 11.0%
O 12.0%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6d78009-7482-457a-b396-7818e49ddc94%2F9367541b-974b-4076-96eb-fe223f7088fc%2Fvanrjfi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Krell Industries has a share price of $21.35 today. If Krell is expected to pay a dividend of $
0.61 this year, and its stock price is expected to grow to $ 23.08 at the end of the year, what
is Krell's equity cost of capital?
16.3%
9.6%
O 11.0%
O 12.0%
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