Laurentide Union Bank Is Expected Just Paid a Dividend of $4.20

question 42

Multiple Choice

Laurentide Union Bank is expected just paid a dividend of $4.20 per common share.Laurentide Union Bank expects dividends to grow at a rate of 5% for the foreseeable.If the current market price for a share of Laurentide Union Bank is $40, what is the cost of equity?

• A)10.50%
• B)11.02%
• C)15.50%
• D)16.02%

Understand the concept of return on investment (ROI) and its calculation.

Identify and calculate the minimum required rate of return.

Analyze performance measurements, including margin and turnover.

Understand the effect of changes in sales, expenses, and assets on financial performance indicators.

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Definitions:

Ancestor

A person, plant, animal, or object from whom one is descended, typically one more remote than a grandparent, such as a great-grandparent or beyond.

Synapomorphies

Shared derived characteristics or traits that are used to group organisms together, indicating common ancestry.

Dolphins

Intelligent aquatic mammals known for their complex behaviors and communication skills, belonging to the family Delphinidae.

Mammals

Warm-blooded vertebrates characterized by the presence of mammary glands which produce milk for feeding their young, and typically possessing hair or fur.