What is the company cost of equity

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1. Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.8 percent. The bond sells for $965.18 and matures in 22 years. The par value is $1,000. What is the YTM of the bond?

3.04%

5.78%

4.57%

6.09%

5.48%

2. Countess Corp. is expected to pay an annual dividend of $4.45 on its common stock in one year. The current stock price is $72.55 per share. The company announced that it will increase its dividend by 3.60 percent annually. What is the company's cost of equity?

10.32%

9.46%

9.19%

9.95%

9.73%

Reference no: EM131934774

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