IBM Just Paid a Dividend of $3

question 40

Multiple Choice

IBM just paid a dividend of $3.5 and expects these dividends to grow at 9% a year.The price of IBM is $100 per share.What is IBM's cost of equity capital?

• A)3.5%
• B)9%
• C)12.5%
• D)12.82%

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Definitions:

Administrative Skills

The capabilities related to managing tasks, organizing work, and ensuring efficient operation within an office or organization.

Environmental Scanning

The process of systematically examining the external environment to identify opportunities and threats.

Firm Strategy

The plan of action developed by a business to achieve its goals and to compete effectively in its market.

Organizational Success

The achievement of the objectives and goals set by an organization through effective strategy, management, and operations.