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$ 3.74 million
Chelsea Fashions is expected to pay an annual dividend of $ 1.10 a share next year. The market price of the stock is $ 21.80 and the growth rate is 4.5 percent. What is the firm’ s cost of equity?
9.55 percent
10.54 percent
9.24 percent
7.91 percent
9.77 percent
Operating leverage is the degree of dependence a firm places on its:
Depreciation tax shield.

$ 3.74 million

Chelsea Fashions is expected to pay an annual dividend of $ 1.10 a share next year. The market price of the stock is $ 21.80 and the growth rate is 4.5 percent. What is the firm’ s cost of equity?

9.55 percent

10.54 percent

9.24 percent

7.91 percent

9.77 percent

Operating leverage is the degree of dependence a firm places on its:

Depreciation tax shield.