Multiple Choice
Using the Gordon Model, estimate the cost of retained earnings for a firm whose stock is currently selling for $40, paid a dividend of $.75 last year, and whose growth is expected to be 6% indefinitely.
A) 7.25%
B) 7.99%
C) 10.62%
D) 4/80%
Correct Answer:
Verified
Correct Answer:
Verified
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