Equity shares of phonex Ltd are quoted in the market at Rs17. The divi – McqOptions

MCQOPTIONS

1.	Equity shares of phonex Ltd are quoted in the market at Rs17. The dividend expected a year hence is Rs1.50. The expected rate of dividend growth is 8%. The cost of equity capital to the company is
A.	11.08%
B.	13.88%
C.	15.46%
D.	16.82%
Answer» E.

Discussion

No Comment Found

Related MCQs

Two mutually exclusive projects with different economic lives can be compared on the basis of
If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:
Risk in Capital budgeting implies that the decision-maker knows___________of the cash flows.
Minimum Rate of Return that a firm must earn in order to satisfy its investors, is also known as:
In order to calculate the proportion of equity financing used by the company, the following should be used:
In order to find out cost of equity capital under CAPM, which of the following is not required:
Which of the following is not a generally accepted approach for Calculation of Cost of Equity?
In MM Model with taxes, where 'r' is the interest rate, D is the total debt and 't' is tax rate, then present valued shields would be:
Which of the following appearing in the balance! generates tax advantage and hence affects the c, structure decision ?
Which of the following stresses on investor's preference reorient dividend than higher future capital gains ?