The return on equity of KillerApps Inc.is 20 percent of which it pays out 30 percent as dividends,and reinvests the rest in the company.The company is expected to pay a dividend of $1.50 next year and the current stock price is $30.The cost of equity of KillerApps is:
A) 15%
B) 17%
C) 19%
D) 21%
Correct Answer:
Verified
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