The Following Financial Information Is Available on the Haverty Company

question 108

Multiple Choice

The following financial information is available on the Haverty Company: $\begin{array}{lr}\text {Current per share market price }&\$48.00\\\text {Most recent per share dividend }&\$3.50\\\text { Expected long term growth rate}&5.0\%\\\end{array}$
Haverty can issue new common stock to net the company $44 per share. Determine the cost of equity raised through selling new stock using the dividend growth model approach. (Compute answer to the nearest .1%) .

• A) 12.3%
• B) 13.4%
• C) 13.0%
• D) 12.7%

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Definitions:

Minimum Wage

The lowest legally allowed wage that employers can pay their employees.

Employed

The condition of being employed or involved in a job or project for the purpose of generating revenue.

Minimum Wage

The lowest legally permissible wage that employers can pay their workers, intended to protect laborers from exploitation.

Earn Per Hour

The amount of income or wages received by an individual or paid for a specific task or job, calculated on an hourly basis.