× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
y
2
s
2
a
1
w
1
w
1
i
1
m
1
s
1
c
1
k
1
1
m
1
New Topic  
Memphic Memphic
wrote...
Posts: 728
Rep: 0 0
6 years ago
Taggart Transcontinental has a divided yield of 2.5%. Taggart's equity cost of capital is 10%, and its dividends are expected to grow at a constant rate.  Based on this information, Taggart's constant growth rate in dividends is closest to:
A) 2.5%
B) 5.0%
C) 10.0%
D) 7.5%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 810 times
1 Reply

Related Topics

Replies
wrote...
6 years ago
D
Explanation:  D) P0 =   → re - g =   = .10 - g = .025 = g = .075 or 7.5%
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1182 People Browsing
 194 Signed Up Today
Related Images
  
 531
  
 643
  
 1019
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 405