The return on equity of KillerApps Inc. is 20 percent of which it pays out 30 p…

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Wize University Introduction to Finance Textbook > Cost of Capital

Cost of Equity

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The return on equity of KillerApps Inc. is 20 percent of which it pays out 30 percent as dividends, and reinvests the rest in the company. The company is expected to pay a dividend of $1.50 next year and the current stock price is $30. The cost of equity of KillerApps is:

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