rate positively ..
We can use DDM model to compute the cost of common stock | |||||||||
Cost of common stock = | Expected dividend next year/Price today + Growth rate | ||||||||
(1.2*105.1%)/12.58+5.1% | |||||||||
15.13% | |||||||||
Therefore answer = | 15.13% | ||||||||
Oriole Tire Co. just paid an annual dividend of $1.20 on its common shares. If Oriole...
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