Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 2

The Mobil Appliance Company's earnings, dividends, and stock price are expected to grow at an annual rate of 12%. Mobil's common stock is currently traded at $18 per share. Mobil's last cash dividend was $1.00, and its expected cash dividend for the end of this year is $1.12. Determine the cost of retained earnings ( k r ).