Chelsea Fashions is expected to pay an annual dividend of $0.80 a share next year.The market price of the stock is $19.60 and the growth rate is 5 percent.What is the firm's cost of equity?
A) 7.58 percent
B) 7.91 percent
C) 8.24 percent
D) 9.08 percent
E) 10.00 percent
Correct Answer:
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