The dividends and stock price of Mimi company are expected to grow at 5 percent per year at very far future year. Mimi’s common stock sells for 25 per share, its last dividend was 2.50, Mimi should pay 2.50 flotation cost. What is the expected return on retained earnings for Mimi Company? 16.11% 16.67% 15.00% 15.5%
The dividends and stock price of Mimi company are expected to grow at 5 percent per year at very far future year. Mimi’s common stock sells for 25 per share, its last dividend was 2.50, Mimi should pay 2.50 flotation cost. What is the expected return on retained earnings for Mimi Company? 16.11% 16.67% 15.00% 15.5%
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 12P
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- The dividends and stock price of Mimi company are expected to grow at 5 percent per year at very far future year. Mimi’s common stock sells for 25 per share, its last dividend was 2.50, Mimi should pay 2.50 flotation cost. What is the expected return on
retained earnings for Mimi Company? - 16.11%
- 16.67%
- 15.00%
- 15.5%
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