The last paid dividend is $2 for a share of ordinary shares that is currently selling for $20. What is the cost of ordinary equity he long-term growth rate in dividends for the firm is expected to be 8%?
The last paid dividend is $2 for a share of ordinary shares that is currently selling for $20. What is the cost of ordinary equity he long-term growth rate in dividends for the firm is expected to be 8%?
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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- Dividend paid = $2
- Growth rate = 8%
- Price of share = $20
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