TLS Expects to Pay a Dividend of $4 Next Year

question 61

Multiple Choice

TLS expects to pay a dividend of $4 next year and expects these dividends to grow at 7% a year? The price of TLS is $90 per share. What is TLS' cost of equity capital?

• A) 10.89%
• B) 11.44%
• C) 10.23%
• D) 9.65%

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