A stock sells for 20 the next dividend will be 3 per share


A stock sells for $20. The next dividend will be $3 per share. If the return on equity ROE is a constant 10% and the company reinvests 30% of earnings in the firm, what must be the opportunity cost of capital?

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Financial Management: A stock sells for 20 the next dividend will be 3 per share
Reference No:- TGS01218742

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