The cost of equity: Tranquility Ltd has common shares with a price of $18.37 per share. The company paid a dividend of $1.50 yesterday, and dividends are expected to grow at 9 percent for three years and then at 2 percent thereafter. What is the implied cost of ordinary shares for Tranquility?
A) 9%
B) 10%
C) 11%
D) 12%

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The Answer of The cost of equity: Tranquility Ltd has common shares with a price of $18.37 per share. The company paid a dividend of $1.50 yesterday, and dividends are expected to grow at 9 percent for three years and then at 2 percent thereafter. What is the implied cost of ordinary shares for Tranquility?
A) 9%
B) 10%
C) 11%
D) 12%

The Cost of Equity: Tranquility Ltd Has Common Shares with a Price