The expected dividend is $1.50 for a share of common stockpriced at $15. What is

Question

The expected dividend is $1.50 for a share of common stockpriced at $15. What is the cost of internal common equity if thelong-term growth in dividends is projected to be 4 percentindefinitely?
a. 6.0 percent b. 8.0 percent c. 12.0 percent d. 14.0 percent The expected dividend is $1.50 for a share of common stockpriced at $15. What is the cost of internal common equity if thelong-term growth in dividends is projected to be 4 percentindefinitely?
a. 6.0 percent b. 8.0 percent c. 12.0 percent d. 14.0 percent

Explanation / Answer

a. 6.0 percent b. 8.0 percent c. 12.0 percent d. 14.0 percent

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