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:

Early Childhood

A period in human development generally ranging from birth to eight years old, during which the foundations of physical, emotional, and intellectual growth are laid.

Emotionally Painful Experiences

Events or situations that result in significant distress and discomfort on an emotional level.

Withstand Pain

The ability or capacity to endure pain or hardship without giving way.

Early Childhood

A developmental period in humans from birth up to approximately 8 years old, marked by rapid physical, cognitive, and emotional growth.