As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and gL = 8.00% (constant). Based on the dividend growth model, what is the cost of common from reinvested earnings?
A. 10.69%
B. 11.25%
C. 11.84%
D. 12.43%
E. 13.05%
Answer: C
Business
You might also like to view...
Despite their popularity, e-mails, text messages, blogs, memos, e-bulletins, and so on are considered to be at the lower end of ______ because you cannot detect levels of emotion and do not have verbal and nonverbal cues.
What will be an ideal response?
Business
When faced with a cross-culture negotiation, negotiators can quickly learn and effectively modify their approach in a short time.
Answer the following statement true (T) or false (F)
Business
UNASUR is the economic community of South American nations
Indicate whether the statement is true or false
Business
According to utilitarianism, it does not matter how many people suffer a negative effect from an act
Indicate whether the statement is true or false
Business