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EF have just paid a dividend of 20 cents a share and the current share...

EF have just paid a dividend of 20 cents a share and the current share price is $3.75. EF regularly reinvests 40% of its profit for the year and generates a return on reinvested funds of 12%.

The cost of equity for EF using the dividend valuation model is:

A.

10.4%

B.

12.9%

C.

10.7%

D.

13.2%

CIMA F2 Summary

  • Vendor: CIMA
  • Product: F2
  • Update on: Jul 29, 2025
  • Questions: 268
Price: $52.5  $149.99
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