Krell Industries has a share price of $22.12 today. If Krell is expected to pay a dividend of $0.94 this year and its stock price is expected to grow to $24.82 at the end of the year, what is Krell's dividend yield and equity cost of capital? The dividend yield is 4.2 %. (Round to one decimal place.) The capital gain rate is %. (Round to one decimal place.)

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter9: The Cost Of Capital
Section: Chapter Questions
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The dividend yield is 4.2%. (Round to one decimal place.)
The capital gain rate is ☐ %. (Round to one decimal place.)
Krell Industries has a share price of $22.12 today. If Krell is expected to pay a dividend of $0.94 this year and its stock price is expected to grow to $24.82 at the end of the year, what is Krell's
dividend yield and equity cost of capital?
Transcribed Image Text:F The dividend yield is 4.2%. (Round to one decimal place.) The capital gain rate is ☐ %. (Round to one decimal place.) Krell Industries has a share price of $22.12 today. If Krell is expected to pay a dividend of $0.94 this year and its stock price is expected to grow to $24.82 at the end of the year, what is Krell's dividend yield and equity cost of capital?
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