BMIG Ltd Has a Current Share Price of $12 $12.13 \%$

question 35

Multiple Choice

BMIG Ltd has a current share price of $12.13.It is expected to pay $0.73 in dividends next period and it has a growth rate of 12%.What is the cost of equity capital for BMIG Ltd?

• A) \( 12.13 \% \)
• B) \( 14.71 \% \)
• C) \( 16.08 \% \)
• D) \( 18.02 \% \)

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Definitions:

Accounts Payable

A liability to a creditor, carried on an open account, usually for purchases of goods and services.

Prepaid Expenses

Costs paid in advance for goods or services to be used or received in the future, classified as current assets on a balance sheet.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.