Gremlin Industries will pay a dividend of $1.80 per share this year. It is expected that this dividend will grow by 4% per year each year in the future. The current price of a Gremlin share is $22.40. What is Gremlin's equity cost of capital?
A) 12%
B) 16%
C) 14%
D) 11%
Correct Answer:
Verified
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