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Calculate the company cost of capital using the gordon

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Reference no: EM132712484

Fanny Bhd is an all equity company in the steel industry. Last year, the company had paid a dividend of RM4 for 10 million shares issued at RM1 par value. The company estimated to pay a dividend payment of RM8 in eight years from today. The company expects the same rate of growth for foreseeable future. The company is reported a current market price of RM36.

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Problem i) Calculate the company's cost of capital using the Gordon's dividend growth model

Reference no: EM132712484

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