Examveda
Examveda

Stock selling price is Rs 45, an expected dividend is Rs 10 and an expected growth rate is 8% then cost of common stock would be

A. 55.00%

B. 35.00%

C. 30.00%

D. 30.22%

Answer: Option D


This Question Belongs to Commerce >> Financial Management

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Comments ( 3 )

  1. Samar Kumar
    Samar Kumar :
    3 years ago

    Correct Answer is
    Cost of Capital=(10/45)%+8%
    =22.22%+8%
    =30.22%

  2. Narayan Maharana
    Narayan Maharana :
    3 years ago

    cost of capital=(10/45)%+8%
    =22.22%+8%
    =30.22%

  3. Biswajit Biswal
    Biswajit Biswal :
    6 years ago

    Ans is wrong. Correct ans will be 32.

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