Anle Corporation has a current stock price of $20 and is expected to pay a dividend of $1 in one year Its expected stock price right after paying that dividend is $22 a What is Anles equity cost of capital b How much of Anles equity cost of capital is expected to be satisfied by dividend yield and ...

Plan We can rearrange Eq 71 to find the cost of capital given the curr ...

Anle Corporation has a current stock price of $20 and is expected to pay a dividend of

Question:

Anle has a current stock price of $20 and is expected to pay a of $1 in one year. Its expected stock price right after paying that is $22.
a. What is Anle’s equity How much of Anle’s equity is expected to be satisfied by yield and how much by capital gain?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...