Chelsea Fashions is expected to pay an annual dividend of $1.10

jagguarpaw January 26, 2017 0 Comments

Question: Chelsea Fashions is expected to pay an annual divi…

Chelsea Fashions is expected to pay an annual dividend of $1.10 a share next year. The market price of the stock is $21.80 and the growth rate is 4.5 percent. What is the firm’s cost of equity?