IBM Expects to Pay a Dividend of $3 Next Year

question 110

Multiple Choice

IBM expects to pay a dividend of $3 next year and expects these dividends to grow at 8% a year.The price of IBM is $95 per share.What is IBM's cost of equity capital?

• A)3.16%
• B)4.84%
• C)8%
• D)11.16%

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Definitions:

Socially Approved Goals

Objectives and aspirations that are widely accepted and valued by a society or social group.

Deviance

Behaviors or actions that violate societal norms or expectations, potentially resulting in societal judgement or sanctions.

Robert Merton's Typology

A framework developed by sociologist Robert Merton to categorize human responses to cultural goals and the means of achieving them.

Innovation

The process of creating new ideas, products, or methods, often leading to improvements or advancements.