Krell Industries has a share price of $21.94 today. If Krell is expected to pay a dividend of $1.05 this year, and its stock price is expected to grow to $23.03 at the end of the year, what are Krell's dividend yield and equity cost of capital?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 7P
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What are the dividend yield and equity cost of capital on these financial accounting question?

Krell Industries has a share price of $21.94 today. If Krell is expected to pay a
dividend of $1.05 this year, and its stock price is expected to grow to $23.03 at the
end of the year, what are Krell's dividend yield and equity cost of capital?
Transcribed Image Text:Krell Industries has a share price of $21.94 today. If Krell is expected to pay a dividend of $1.05 this year, and its stock price is expected to grow to $23.03 at the end of the year, what are Krell's dividend yield and equity cost of capital?
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