An analyst does research about the cost of

问题单项选择题

An analyst does research about the cost of capital and gathers the following information about a company:
·Current share price is $60
·Current annual dividend per share is $1.50
·Stable retention ratio is 40%
·Historical return on equity is 12%
Using the dividend discount model approach, the cost of equity is closest to:

A. 7.30%
B. 7.42%
C. 9.88%

答案

参考答案：B

解析：使用股利贴现模型(Dividend Discount Model)的计算公式：K_ce=D₁/P₀+g。
g=(return on equity)×(retention ratio)，由此得：
g=12%×0.4=4.8%，所以
K_ce=$1.5×(1+4.8%)/$60+4.8%=7.42%。