Multiple Choice
A firm's stock is selling for $85.The dividend yield is 5%.A 7% growth rate is expected for the common stock.The firm's tax rate is 32%.What is the firm's cost of common equity?
A) 8.16%
B) 12.00%
C) 12.35%
D) 10.40%
Correct Answer:
Verified
Correct Answer:
Verified
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