4. If the dividends to be paid in one year on a common stock issue are...

Question

Question

4. If the dividends to be paid in one year on a common stock issue are $3.50 per share, the current price of the stock is $50

business finance

Answer 1

Answer #1

Cost of common stock=(D1/Current price)+Growth rate

=(3.5/50)+0.06

which is equal to

=13%

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Answer 2

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