Jaynestown Corp is currently priced at 22.00 per share. They just paid their annual dividend of $1.33. They have been experiencing growth in dividends of 3.5% and expect this to continue. What is the firm's cost of equity? O 6.05% O 9.55% O 6.42%

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter9: The Cost Of Capital
Section: Chapter Questions
Problem 5P
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Jaynestown Corp is currently priced at 22.00 per share. They just paid
their annual dividend of $1.33. They have been experiencing growth in
dividends of 3.5% and expect this to continue. What is the firm's cost
of equity?
O 6.05%
O 9.55%
O 6.42%
O 9.76%
O 6.26%
Transcribed Image Text:Jaynestown Corp is currently priced at 22.00 per share. They just paid their annual dividend of $1.33. They have been experiencing growth in dividends of 3.5% and expect this to continue. What is the firm's cost of equity? O 6.05% O 9.55% O 6.42% O 9.76% O 6.26%
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