The cost of equity: Gangland Water Guns Ltd is expected to pay a dividend of $2.10 one year from today. If the company's growth in dividends is expected to remain at a flat 3 percent forever, then what is the cost of equity capital for Gangland if the price of its ordinary shares is currently $17.50?
A) 12.00%
B) 14.65%
C) 15.00%
D) 15.36%
Correct Answer:
Verified
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