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    Intermediate Financial Management Study Set 2
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    Exam 10: Determining the Cost of Capital
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    Your Company's Stock Sells for $50 Per Share, Its Last
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Your Company's Stock Sells for $50 Per Share, Its Last

Question 46

Question 46

Multiple Choice

Your company's stock sells for $50 per share, its last dividend (D0) was $2.00, and its growth rate is a constant 5 percent. What is the cost of common stock, rs?


A) 9.0%
B) 9.2%
C) 9.6%
D) 9.8%
E) 10.0%

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