Omega Technologies has a current share price of $45.80. If Omega is expected to pay a dividend of $1.37 this year, and its stock price is projected to grow to $48.55 at the end of the year, calculate Omega'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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Financial accounting question

Omega Technologies has a current share price of $45.80. If Omega is expected to
pay a dividend of $1.37 this year, and its stock price is projected to grow to $48.55
at the end of the year, calculate Omega's dividend yield and equity cost of capital.
Transcribed Image Text:Omega Technologies has a current share price of $45.80. If Omega is expected to pay a dividend of $1.37 this year, and its stock price is projected to grow to $48.55 at the end of the year, calculate Omega's dividend yield and equity cost of capital.
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