IBM Expects to Pay a Dividend of $4 Next Year

question 61

Multiple Choice

IBM expects to pay a dividend of $4 next year and expects these dividends to grow at 7% a year.The price of IBM is $90 per share.What is IBM's cost of equity capital?

• A)9.65%
• B)10.23%
• C)10.89%
• D)11.44%

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Definitions:

Impaired People

Are considered deficient in physical or mental capacity.

Age Cohort

A group of individuals who share a common age characteristic, typically used in sociological and demographic analyses to examine similarities and differences within and across populations.

Ageism

Prejudice or discrimination against individuals or groups based on their age.

Age Roles

Socially defined expectations and behaviors considered appropriate for individuals or groups based on their age.