Problem:
Martin Industries just paid an annual dividend of $1.60 a share. The market price of the stock is $27.70 and the growth rate is 9.0 percent.
Required:
Question: What is the firm's cost of equity?
- 9.56 percent
- 16.68 percent
- 14.04 percent
- 24.48 percent
- 15.30 percent
Note: Please show how to work it out.