Klints Inc. paid an annual dividend of $1.45 last year. The firm's stock sells for $31.50...
Klints Inc. paid an annual dividend of $1.45 last year. The firm's stock sells for $31.50 per share, and the company is expected to grow at about 4% per year into the foreseeable future. Estimate Klints' cost of retained earnings. Round the answer to two decimal places. Do not round intermediate calculations
Homework Answers
cost of retained earnings=(D1/Current price)+Growth rate
=[(1.45*1.04)/31.5]+0.04
which is equal to
=8.79%(Approx).
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