IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 7% a year. The price of IBM is $100 per share. What is IBM's cost of equity capital? A. 2.7% B. 7% C. 3.6% D. 9%

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 7% a year. The price of IBM is $100 per share. What is IBM's cost of equity
capital?
A. 2.7%
B. 7%
C. 3.6%
D. 9%
Transcribed Image Text:IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 7% a year. The price of IBM is $100 per share. What is IBM's cost of equity capital? A. 2.7% B. 7% C. 3.6% D. 9%
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