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Calculate the cost of common stock shares

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Question - Two years ago Mike purchased 100 shares of common stock in ABC Manufacturing Company Limited and paid $60 for each share. The stock is currently selling for $53 per share and paid a dividend of $1.45 per share last month. If the company has been experiencing constant growth of approximately 5% for the last four years and this rate of growth is expected to continue for the foreseeable future. Calculate the cost of common stock shares.

a. 10.87 percent

b. 7.87 percent

c. 7.54 percent

d. 5.03 percent

Reference no: EM133087246

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