The following data relates to the ordinary shares of Lye Cheese Co.
Current market price, 31 December 20X1
250c
Market price one year ago, 31 December 20X0
227c
Earning per share, 20X1
57.73c
Dividend per share, 20X1
35c
Expected growth rate in dividends and earnings
10% per annum
Average market return
20%
Risk-free rate of return
13%
Basic rate of income tax
30%
Beta factor of Lye Cheese Co's equity
1.5
The estimated cost of Lye Cheese Co's equity, using the dividend growth model and market price, is:
The correct answer is: 25.4%
ke
do (1 + g)
+ g
MV ex div
+ 0.10
0.254 or 25.4%
微信号：gaoduntiku
合作账户登录：
账户名：
密码：
关注官方微信
微信号:gaoduneclass
高顿网校
售前咨询(9:00-21:00)
400-168-8811
在线客服点击咨询
售后咨询(9:00-21:00)
021-31068088
fankui@gaodun.com
微信扫一扫实时资讯全掌握
Copyright © 2006- 高顿网校, All Rights Reserved.
