Required rate of return and cost of capital are the same


1. Required rate of return and cost of capital are the same thing ( True or false ) Explain

2. A stock will pay $3/share in year 1, $6/share in year 2, $9/share in year 3. Afterwards, they will change their dividend policy to constant growth at 2%/year, forever. R=13%. How much dividend will be paid in year 25?

13.91

132.42

18.35

18.36

None of the above.

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Financial Management: Required rate of return and cost of capital are the same
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