Question

ABC Inc. is expected to pay an annual dividend of R0.80 a share next year. The...

ABC Inc. is expected to pay an annual dividend of R0.80 a share next year. The market price of the share is R22.40 and the growth rate is 5%. What is the firm's cost of equity?

7.6%

7.9%

8.2%

8.6%

0 0
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Answer #1

Calculation of (Using Gardans Cast of Graneth Equity model) Greven Next Year Market Expected Dividend (Oi) = .80 Price Per S

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