Use the Following Information to Answer the Question(s)below

question 88

Multiple Choice

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:

• A)4.0%.
• B)6.4%.
• C)8.2%.
• D)14.0%.

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Definitions:

Liberty

Liberty refers to the state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Legalized Abortion

The legal provision that allows for the termination of a pregnancy under certain conditions, varying widely by jurisdiction.

Liberals

Individuals or groups advocating for policies that emphasize the need for the government to solve problems, especially those related to social inequality, civil rights, and social justice.

Conservatives

A political ideology favoring the preservation of traditional institutions and values combined with a cautious approach to change and innovation.