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%.

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Definitions:

Laryngitis

Inflammation of the larynx or voice box, resulting in hoarseness or loss of voice, often caused by infection or overuse.

Tonsillitis

Inflammation of the tonsils—lymphoid tissue located in the pharynx.

Pharyngitis

Inflammation of the pharynx, commonly known as throat inflammation, which can cause sore throat and difficulty swallowing.

Pleura

A double-layered membrane surrounding each lung, providing lubrication and facilitating breathing movement.