If the earnings per share of the firm is OMR 10 and the market price is  OMR 100 and the growth rate is earning of the firm is 5 %. Calculate the cost of  equity share capital.   a. 12.5% b. 10% c. None of these

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 13P: The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public...
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If the earnings per share of the firm is OMR 10 and the market price is  OMR 100 and the growth rate is earning of the firm is 5 %. Calculate the cost of  equity share capital.


 

a.

12.5%

b.

10%

c.

None of these

d.

15%

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