Find cost of internal common equity for long-term growth


The expected dividend is $1.50 for a share of common stock priced at $15. What is the cost of internal common equity if the long-term growth in dividends is projected to be 4 percent indefinitely?

i) 6.0 percent
ii) 8.0 percent
iii) 12.0 percent
iv) 14.0 percent

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Finance Basics: Find cost of internal common equity for long-term growth
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