ExamVeda
Login
Home

Stock selling price is Rs 45 an expected dividend is Rs...

This question belongs to Commerce Financial Management
Financial Management
?

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

Answer & Solution
Correct Answer: Option D
Let's discuss the solution. Join the discussion
Examveda
Question posted by Examveda
Community

Join the Discussion

3 Comments
Samar Kumar
Samar Kumar 6 years ago
Correct Answer is
Cost of Capital=(10/45)%+8%
=22.22%+8%
=30.22%
Narayan Maharana
Narayan Maharana 6 years ago
cost of capital=(10/45)%+8%
=22.22%+8%
=30.22%
Biswajit Biswal
Biswajit Biswal 8 years ago
Ans is wrong. Correct ans will be 32.
Keep Learning

Related Questions on Financial Management

Investment is the _______________.
A. net additions made to the nation’s capital stocks B. person’s commitment to buy a flat or house C. employment of funds on assets to earn returns D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities B. Arrangement of funds C. Efficient Management of every business D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return B. to minimize the risk C. to maximize the wealth of owners D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds B. arrangement of financial resources C. acquiring capital assets of the organization D. efficient management of capital
More Related Questions on Financial Management