TLS Expects to Pay a Dividend of $3 Next Year

question 9

Multiple Choice

TLS expects to pay a dividend of $3 next year and expects these dividends to grow at 8% a year. The price of TLS is $95 per share. What is TLS' cost of equity capital?

• A) 3.16%
• B) 8%
• C) 4.84%
• D) 11.16%

---

Definitions:

Behavioral Approach

A method of studying leadership or other psychological phenomena by observing and analyzing observable behaviors rather than internal processes.

Leadership Behaviors

Actions and attitudes demonstrated by leaders, including how they communicate, motivate, and guide their followers toward achieving goals.

Universal Style

A hypothetical leadership approach presumed to be effective across different situations and groups, though in practice, leadership effectiveness often varies with context.

Team Outcomes

The results or outputs produced by a group working together towards common objectives.