Winslow and Sons Is Expected to Pay an Annual Dividend

question 40

Multiple Choice

Winslow and Sons is expected to pay an annual dividend of $1.35 per share one year from now with future increases of 2.5 percent annually.The stock currently sells for $14.70 a share.What is the cost of equity?

• A)13.48 percent
• B)12.29 percent
• C)12.60 percent
• D)11.68 percent
• E)13.23 percent

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