Multiple Choice
Topstone Industries is expected to pay a dividend of $2.10 per share in one year. This dividend, along with the firm's earnings, is expected to grow at a rate of 5% forever. If the current market price for a share of Topstone is $38.62, what is the cost of equity?
A) 6.00%
B) 10.44%
C) 10.71%
D) 11.00%
E) 11.22%
Correct Answer:
Verified
Correct Answer:
Verified
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