The Return on Equity of KillerApps Inc

question 58

Multiple Choice

The return on equity of KillerApps Inc.is 20 percent of which it pays out 30 percent as dividends,and reinvests the rest in the company.The company is expected to pay a dividend of $1.50 next year and the current stock price is $30.The cost of equity of KillerApps is:

• A) 15%
• B) 17%
• C) 19%
• D) 21%

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Definitions:

Financial Pressures

The strain or stress experienced by individuals, families, or organizations due to financial obligations and difficulties.

Marital Happiness

The state of experiencing joy, fulfillment, and satisfaction within a marriage, significantly influenced by factors such as communication, compatibility, and mutual respect.

Sexual Compatibility

The degree to which partners share mutual satisfaction and preferences in their sexual relationship, affecting overall relationship satisfaction.

Brym and Lie

A reference to authors Robert Brym and John Lie, known for their contributions to sociology, including works on social theory and sociological research.