Shamas Famous Restaurants expects to pay a common stock dividend of $1.50 per share next...
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Finance
Shamas Famous Restaurants expects to pay a common stock dividend of $1.50 per share next year (d1). Dividends are expected to grow at a 4% rate for the foreseeable future. Shamas common stock is selling for $18.50 per share and issuance costs are $3.50 per share. What is Shamas cost of internal equity?
a. 10.00%
b. 20.59%
c. 12.11%
d. 14.00%
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