Chelsea Fashions is expected to pay an annual dividend of $1.26 a share next year. The market price of the stock is $24.09 and the growth rate is 2.6 percent. What is the cost of equity?
A) 9.77 percent
B) 7.91 percent
C) 9.24 percent
D) 7.83 percent
E) 7.54 percent
Correct Answer:
Verified
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