Question 9.S-TQ1: Gorky has in issue 500,000 £1 ordinary shares whose current ...

Corporate Finance Principles and Practice [693350]

Gorky has in issue 500,000 £1 ordinary shares whose current ex dividend market price is £1.50 per share. The company has just paid a dividend of 27p per share and dividends are expected to continue at this level for some time. If the company has no debt capital, what is its weighted average cost of capital?

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