What Would You Estimate as the Cost of Equity If

question 73

Multiple Choice

What would you estimate as the cost of equity if a stock sells for $40,pays a $4.25 dividend,and is expected to grow at a constant rate of 5%?

• A) 17.46%
• B) 14.52%
• C) 12.69%
• D) 15.63%

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Definitions:

Sixteen

The number following fifteen and preceding seventeen, often denoting a specific quantity in a sequence.

Partisan Loyalty

A strong allegiance to a particular political party and its policies, often leading to biased support regardless of evidence or arguments to the contrary.

State Legislator

An elected member of the legislative body within a state, responsible for making and amending state laws.

U.S. Senator

A member of the United States Senate, one of the two chambers in the U.S. Congress, representing one of the 50 states.