Friday
March 27, 2015

Homework Help: Financial Management

Posted by Sandra on Wednesday, April 21, 2010 at 2:38pm.

A firm's stock is selling for $85, Dividend yield=5%. A 7% growth rate is expected for the common stock. The firm's tax rate is 32%. (question) What is the firm's cost of retained earnings?
a)8.16%
b)12.00%
c)12.35%
d)cannot be determined

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