Question

the shares of a company are selling at rs 40 per share and it had paid a dividend of rs 4 per share last year. the investor's market expects a growth rate of 5 percent per year.
A) compute the company's cost of equity
B) if the anticipated growth rate is 7 percent per annum, calculate the indicated market price per share

Answer 1

Answer:

$A) compute the company's cost of equity \: that \: a \: simple \: goods$