Explore BrainMass
Share

Explore BrainMass

    Cost of equity for Lester's Electronics

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Last week, Lester's Electronics paid an annual dividend of $2.75 on its common stock. The company has a longstanding policy of increasing its dividend by 3 percent annually. This policy is expected to continue. What is the firm's cost of equity if the stock is currently selling for $42.5 a share?

    1. 9.66 percent
    2. 7.77 percent
    3. 8.80 percent
    4. 7.22 percent
    5. 9.91 percent.

    © BrainMass Inc. brainmass.com October 10, 2019, 3:57 am ad1c9bdddf
    https://brainmass.com/business/issuing-equity/cost-of-equity-for-lester-s-electronics-442773
    $2.19