Jumbuck Exploration Has a Current Stock Price of $2

question 4

Multiple Choice

Jumbuck Exploration has a current stock price of $2.00 and is expected to sell for $2.10 in one year's time, immediately after it pays a dividend of $0.26. Which of the following is closest to Jumbuck Exploration's equity cost of capital?

• A)22%
• B)18%
• C)12%
• D)9%

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