Ask Question
27 January, 04:34

Taggart Transcontinental has a divided yield of 3.5%. Taggart's equity cost of capital is 10%, and its dividends are expected to grow at a constant rate. Based on this information, Taggart's constant growth rate in dividends is closest to:

+4
Answers (1)
  1. 27 January, 05:25
    0
    Taggart's constant growth rate in dividends is closest to: 6.5%

    Solution:

    Given,

    Taggart Transcontinental has a divided yield of 3.5%

    Equity cost of capital = 10%

    To Find: Taggart's constant growth rate in dividends

    So, we need to calculate:

    = > 10% - 3.5% = 6.5%

    Taggart's constant growth rate in dividends is closest to: 6.5%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Taggart Transcontinental has a divided yield of 3.5%. Taggart's equity cost of capital is 10%, and its dividends are expected to grow at a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers