Anle corporation has a current stock price of 20 and is


Anle Corporation has a current stock price of $20 and is expected to pay a dividend of $1 in one year. Its expected stock price right after paying that dividend is $22.

a. What is Anle's equity cost of capital?

b. How much of Anle's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain?

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Cost Accounting: Anle corporation has a current stock price of 20 and is
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