Question
The Down and Out Co. just issued a dividend of $2.81 per share on its common...
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The Down and Out Co. just issued a dividend of $2.81 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $45 a share, what is the company's cost of equity? (Do not round your intermediate calculations.) |
11.24%
6.67%
12.13%
11.56%
10.98%
Homework Answers
Answer #1
cost of the equity = 11.56%
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