Multiple Choice
An all-equity firm produced a dividend flow of $30,000 last year.The market value of the firm is $875,000 and the dividend is expected to increase at 3% each year.What is the cost of equity capital for this firm?
A) 6.53%
B) 6.91%
C) 7.45%
D) 7.89%
E) 8.17%
Correct Answer:
Verified
Correct Answer:
Verified
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