A Company Has a Stock Price of $50

question 217

Multiple Choice

A company has a stock price of $50.00 and paid a dividend of $1.48 per share last year. The estimated growth rate is 2%. What is the cost of equity based on the dividend growth model?

• A) 4.81%
• B) 4.85%
• C) 4.91%
• D) 4.96%
• E) 5.01%

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Definitions:

Living Green

The practice of making lifestyle choices that are environmentally sustainable and reduce harm to the planet.

Formal Social Movement

A large, well-integrated, and established organization with bureaucratic procedures.

National Rifle Association

is an American organization that advocates for gun rights, focusing on the protection of the Second Amendment of the U.S. Constitution.

Gun Control

Legislation and policies designed to regulate the manufacture, sale, transfer, possession, modification, or use of firearms by civilians.