What is the market value of one common share?  Use the dividend discount model and make the following assumptions when solving this problem: 
 

1. A dividend of $2.50 at time period zero
2. An 18% required rate of return on equity;  
3. A 5% growth rate in the dividend stream

$18.90

$17.65

$20.19

$19.45

$18.10

What is Huxley Horticulture's WACC?

13.8%

14.5%

16.8%

12.6%

15.7%

Answer rating: 100% (QA)

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