Jumbuck Exploration has a current stock price of $2.05 and is expected to sell for $2.15 in one year's time, immediatel...

Question

Question

Jumbuck Exploration has a current stock price of $2.05 and is expected to sell for $2.15 in one years time, immediately afte

Answer 1

Answer #1

Equity cost of capital=(End value-Beginning value+Dividend)/Beginning value

=(2.15-2.05+0.38)/2.05

which is equal to

=23.42%(Approx).

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Answer 2

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