Temple Company's Common Stock Dividends Have Grown Over the Past

question 7

Multiple Choice

Temple Company's common stock dividends have grown over the past 5-year period from $0.60 per share to $0.89 (today) . Assume that Temple's dividends are expected to grow at this rate for the foreseeable future. Temple's stock is currently selling for $12 per share. New common stock can be sold to net the company $11 per share. Determine the costs of internal and external equity to Temple.

• A) 18.1%; 18.9%
• B) 15.9%; 16.6%
• C) 16.2%; 16.9%
• D) 15.9%; 18.9%

---

Definitions:

Superordinate Goals

Shared objectives that transcend individual or group interests, promoting cooperation and cohesion among previously competitive or conflicting parties.

Strategic Contingencies

Factors or events that are not directly under the control of a manager or organization but must be accounted for in strategic planning as they could impact the organization's success.

Institution

An established organization or foundation, especially one dedicated to education, public service, or culture.

Personal Gain

Pursuing one's own interests or benefits, often without regard for the welfare of others or ethical considerations.