Jumbuck Exploration Has a Current Stock Price of $3

question 42

Multiple Choice

Jumbuck Exploration has a current stock price of $3.00 and is expected to sell for $3.15 in one year's time, immediately after it pays a dividend of $0.28. Which of the following is closest to Jumbuck Exploration's equity cost of capital?

• A) 7.17%
• B) 8.60%
• C) 14.33%
• D) 17.91%

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