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The Cost of Equity: UltraFlex Diving Boards, Inc

Question 73

Multiple Choice

The cost of equity: UltraFlex Diving Boards, Inc., is just paid a dividend of $1.50. If the firm's growth in dividends is expected to remain at a flat 4 percent forever, then what is the cost of equity capital for Ultra Flex Diving Boards if the price of its common shares is currently $26.00?


A) 5.77%
B) 6.00%
C) 9.77%
D) 10.00%

Correct Answer:

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