Zappin' Skeeters Corporation Needs to Know Its Cost of Retained $$\begin{array} { l l } \text { Year } & \text { Dividend } \\2014 & \$ 1.55 \\2013 & \$ 1.40 \\2012 & \$ 1.35 \\2011 & \$ 1.32\end{array}$$

question 28

Multiple Choice

Zappin' Skeeters Corporation needs to know its cost of retained earnings. Based on the following information, compute the cost of retained earnings: The stock sells for $25, flotation costs are $3, and the firm is in the 35% tax bracket. $$\begin{array} { l l } \text { Year } & \text { Dividend } \\2014 & \$ 1.55 \\2013 & \$ 1.40 \\2012 & \$ 1.35 \\2011 & \$ 1.32\end{array}$$

• A) 15.71%
• B) 9.11%
• C) 12.56%
• D) 10.72%

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Definitions:

Oxaloacetate

A four-carbon molecule that acts as a key intermediate in the citric acid cycle and gluconeogenesis.

Mitochondrial Intermembrane

The space located between the inner and outer membranes of mitochondria, involved in the electron transport chain.

ATP Synthase

An enzyme complex that produces ATP from ADP and inorganic phosphate during cellular respiration and photosynthesis.

Hydrogen Ions

Positively charged ions (H+) formed when hydrogen atoms lose their electrons, significantly involved in acid-base chemistry.