Question

    A company's shares with a face value of Rs. 10 each are

    quoted at Rs. 60 in the stock market. Current rate of dividend is 6% and this is expected to grow at a constant rate of 5% p.a. Calculate the cost of equity capital of the company:
    A 15% Correct Answer Incorrect Answer
    B 25% Correct Answer Incorrect Answer
    C 20% Correct Answer Incorrect Answer
    D 10% Correct Answer Incorrect Answer

    Solution

    The correct answer is A

    Practice Next
    More Accounts Questions

    Relevant for Exams:

    ask-question