Question
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
a)8.16%
b)12.00%
c)12.35%
d)cannot be determined
Answers
Anonymous
12%