What is abc cost of external equity

Reference no: EM13286106

ABC Co. has a current dividend of $1.80. Dividends are expected to grow at a rate of 7% a year into the foreseeable future. What is ABC's cost of external equity if its shares can be sold to net $46 a share?

A) 10.9%
B) 11.2%
C) 7.2%
D) None of the above

Reference no: EM13286106

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