Use the Following Information to Answer the Question(s)below

question 88

Multiple Choice

Use the following information to answer the question(s) below.
Rearden Metals has a current stock price of $30 share,is expected to pay a dividend of $1.20 in one year,and its expected price right after paying that dividend is $33.
-Rearden's equity cost of capital is closest to:

• A)4.0%.
• B)6.4%.
• C)8.2%.
• D)14.0%.

---

Definitions:

MARS Model

A framework identifying four factors—motivation, ability, role perceptions, and situational factors—that collectively affect individual performance.

Locus of Control

A psychological concept that refers to how strongly people believe they have control over the situations and experiences that affect their lives.

Big Five

A model outlining five broad dimensions of personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Dimensions

Refers to the broad categories used to describe and quantify individual differences in personality traits.