Using the dividend discount model, what is the cost of equity capital for Zeller Mining if the

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Using the dividend discount model, what is the cost of equity capital for Zeller Mining if the company will pay a dividend of C$2.30 next year, has a payout ratio of 30%, a return on equity (ROE) of 15%, and a stock price of C$45?

A. 9.61%.

B. 10.50%.

C. 15.61%.

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Corporate Finance A Practical Approach

ISBN: 9781118217290

2nd Edition

Authors: Michelle R Clayman, Martin S Fridson, George H Troughton, Matthew Scanlan

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