Ningbo Shipping has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year.The growth rate in dividends has been 5 percent and this growth is expected to continue indefinitely.Based on this information, the cost of the firm's common stock equity is
A)5%.
B)8%.
C)10%.
D)13%.
E)none of the above.

Question

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The Answer of Ningbo Shipping has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year.The growth rate in dividends has been 5 percent and this growth is expected to continue indefinitely.Based on this information, the cost of the firm's common stock equity is
A)5%.
B)8%.
C)10%.
D)13%.
E)none of the above.

Ningbo Shipping Has Common Stock with a Market Price of $25