What is company cost of equity

Assignment Help Financial Management

Reference no: EM131575507

The Down and Out Co. just issued a dividend of $2.31 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $50 a share, what is the company's cost of equity? (Do not round your intermediate calculations.)

a.) 10.34%

b.) 9.36%

c.) 9.62%

d.) 9.85%

e.) 4.95%

Reference no: EM131575507

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