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Find cost of internal common equity for given dividends

The expected dividend is $1.50 for a share of common stockpriced at $15. What is the cost of internal common equity if the long-term growth in dividends is projected to be 4 percent indefinitely?

a. 6.0 percent

b. 8.0 percent

c. 12.0 percent

d. 14.0 percent

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Finance Basics: Find cost of internal common equity for given dividends

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find cost of internal common equity for given dividends

Reference No:- TGS0675756

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find cost of internal common equity for given dividends

Reference No:- TGS0675756

Recent Questions Asked Finance Basics

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Q : Modified internal rate of return for project

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