A stock sells for 30 the next dividend will be 6 per share, Ask an Expert

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A stock sells for $30. The next dividend will be $6 per share. If the return on equity ROE is a constant 15% and the company reinvests 20% of earnings in the firm, what must be the opportunity cost of capital? (Do not round intermediate calculations.)

Cost of Capital %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91590256

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