Target expects to pay a dividend of $2.80 next year and expects these dividends to grow at

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Target expects to pay a dividend of $2.80 next year and expects these dividends to grow at 4 % a year. The price of Target is $80 per share. What is Target's cost of equity capital?

a . 7.64%

b. 7.5 %

c. 11.50 %

d. 10.35 %

Related Book For answer-question

Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Posted Date: Sep 17, 2019 12:15 AM

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Target expects to pay a dividend of $2.80 next year and expects these dividends to grow at

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Targets cost of equity capital will be determined by using the below fo... View the full answer

Fundamentals of Futures and Options Markets

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