Given That Shares Have an Expected Dividend Stream of 10

question 6

Multiple Choice

Given that shares have an expected dividend stream of 10 cents in perpetuity and that the current market price of the shares is $2.40,calculate the cost of equity capital of these shares.

• A)8%
• B)12%
• C)10%
• D)4.2%

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Definitions:

Medical Office

A facility or location where doctors and medical professionals provide care and consultation to patients.

Policies

are formal guidelines or rules adopted by an organization to inform decisions and achieve rational outcomes.

Incident Report

A report required by a facility when an adverse incident with risk of liability occurs.

Intramuscular Injection

A method of administering medication deep into the muscles, allowing it to be absorbed into the bloodstream more quickly than some other methods.