Question
23.
The earnings, dividends, and stock price of Sum Company are expected to growat 7 percent per year after this year. Sum Company's common stock sells for
P23 per share, its last dividend was P2.00 and the company pay P2.14 at theend of the current year. Sum Company should pay P2.50 flotation cost.Using the dividend growth model, what is the expected cost of retained earningsfor Sum Company?A. 10.44 percentB. 16.30 percentC. 9.30 percentD. 17.44 percent
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Subject:
Accounting, Business