Tyler Enterprisess stock is currently selling for $45.56 per share, and the firm expects its per-share dividend
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Question:
Tyler Enterprises’s stock is currently selling for $45.56 per share, and the firm expects its per-share dividend to be $1.38 in one year. Analysts project the firm’s growth rate to be constant at 5.72%. Using the cost of equity using the discounted cash flow (or dividend growth) approach, what is Tyler’s cost of internal equity?
A. 8.31%
B. 11.81%
C. 10.94%
D. 8.75%
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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