Multiple Choice
A firm has common stock with a market price of $25 per share and an expected dividend of $2 pershare at the end of the coming year. The growth rate in dividends has been 5 percent. The cost ofthe firm's common stock equity is
A) 5 percent.
B) 10 percent.
C) 13 percent.
D) 8 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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