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Use the following information to answer the question(s) below.
Rearden Metals has a current stock price of $30 share,is expected to pay a dividend of $1.20 in one year,and its expected price right after paying that dividend is $33.
-Rearden's equity cost of capital is closest to:
Federal Transfer Payments
Payments from the federal government to individuals, states, or other governmental entities without any requirement for repayment.
GDP
GDP, the cumulative market price of all ultimate goods and services produced within the confines of a country over an allotted timeframe.
Government
The system or group of people governing an organized community, often a state, including institutions and mechanisms that regulate and guide the community or society.
Marginal Tax Rate
The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the tax rate on the last dollar of income earned.
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