Krell Industries has a share price of $21.35 today. If Krell is expected to pay a dividend of $ 0.61 this year, and its stock price is expected to grow to $ 23.08 at the end of the year, what is Krell's equity cost of capital? O 16.3% ○ 9.6% O 11.0% O 12.0%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
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Krell Industries has a share price of $21.35 today. If Krell is expected to pay a dividend of $
0.61 this year, and its stock price is expected to grow to $ 23.08 at the end of the year, what
is Krell's equity cost of capital?
16.3%
9.6%
O 11.0%
O 12.0%
Transcribed Image Text:Krell Industries has a share price of $21.35 today. If Krell is expected to pay a dividend of $ 0.61 this year, and its stock price is expected to grow to $ 23.08 at the end of the year, what is Krell's equity cost of capital? 16.3% 9.6% O 11.0% O 12.0%
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