ompany has a return on equity of 8.0% and pays out 35.0% of its earnings as dividends. The company is expected to pay a dividend of $2. 25 next year and the current stock price is $30.00. What is the cost of equity of company? A 8.00% B 15.50% C 12.70% D 7.50% E 10.30%
ompany has a return on equity of 8.0% and pays out 35.0% of its earnings as dividends. The company is expected to pay a dividend of $2. 25 next year and the current stock price is $30.00. What is the cost of equity of company? A 8.00% B 15.50% C 12.70% D 7.50% E 10.30%
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
Company has a
A 8.00%
B 15.50%
C 12.70%
D 7.50%
E 10.30%
Company has a capital structure that uses 25%
A 5.82%
B 8.02%
C 8.94%
D 8.58%
E 9.70%
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