Investors expect Danforth Technologies (DT) to have a stock price one year from now of $52 per share. Investors expect DT to pay a dividend of $3 per share next year. You estimate their equity cost of capital (rE) to be 10%. The expected capital gain rate is: % (round to one decimal place)
Investors expect Danforth Technologies (DT) to have a stock price one year from now of $52 per share. Investors expect DT to pay a dividend of $3 per share next year. You estimate their equity cost of capital (rE) to be 10%. The expected capital gain rate is: % (round to one decimal place)
Chapter9: The Cost Of Capital
Section: Chapter Questions
Problem 5P
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