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CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 63 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 63
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

JJ's current share price is $1.80,with a dividend of $0.20 a share just about to be paid.

Dividends have increased at an average annualgrowth rate of 4.5% and this is expected to continue into the future.

What is JJ'scost of equity?

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Suggested Answer: A

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