THE COMMON STOCK OF GLOBAL CORP. IS SELLING AT $54 PER SHARE. IT E...

21. - BT THANH TOÁN QUỐC TẾ GLOBAL CORPORATE FINANCE DAP AN
Toán BT THANH TOÁN QUỐC TẾ GLOBAL CORPORATE FINANCE DAP AN
21. The common stock of Global Corp. is selling at $54 per share. It expects to pay a dividend of $4 per share and the dividend will grow at a rate of 9 percent per year. What is the cost of the common stock? A. 13.7%. B. 14.9%. C. 15.0%. D. 15.5%. * E. 16.4%. Solution: use Equation (19-2): cost of common stock = 4/54 + .09 = 16.4%