TLS Expects to Pay a Dividend of $4 Next Year

question 61

Multiple Choice

TLS expects to pay a dividend of $4 next year and expects these dividends to grow at 7% a year? The price of TLS is $90 per share. What is TLS' cost of equity capital?

• A) 10.89%
• B) 11.44%
• C) 10.23%
• D) 9.65%

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Definitions:

Food Crops

Plants grown primarily for human consumption, including grains, vegetables, fruits, and nuts, forming the basis of the world's agriculture and diet.

Fertilizers

Substances added to soil to supply essential nutrients to plants, promoting growth and increasing crop yield.

Irrigation

The artificial application of water to land or soil, used to assist in the growing of agricultural crops and the maintenance of landscapes.

Plow

A farming tool used for cutting, lifting, and turning over soil, mainly in preparation for planting.