The Triblani Company Just Issued a dividend of $2.95 per share on its common stock. The company is expected to maintaln a constant 6.1 percent growth rate in its dividends Indefinitely. If the stock sells for $59 a share, what Is the company's cost of equity? (Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %
The Triblani Company Just Issued a dividend of $2.95 per share on its common stock. The company is expected to maintaln a constant 6.1 percent growth rate in its dividends Indefinitely. If the stock sells for $59 a share, what Is the company's cost of equity? (Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %
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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Transcribed Image Text:The Tribiani Company just Issued a dividend of $2.95 per share on its common stock.
The company is expected to maintain a constant 6.1 percent growth rate in its dividends
Indefinitely. If the stock sells for $59 a share, what is the company's cost of equity? (Do
not round intermediate calculatlons and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
Cost of equity
%
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