Jumbuck Exploration Has a Current Stock Price of $3

question 42

Multiple Choice

Jumbuck Exploration has a current stock price of $3.00 and is expected to sell for $3.15 in one year's time, immediately after it pays a dividend of $0.28. Which of the following is closest to Jumbuck Exploration's equity cost of capital?

• A) 7.17%
• B) 8.60%
• C) 14.33%
• D) 17.91%

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Definitions:

Outstanding Deposit

Outstanding deposits are amounts of money that have been deposited in a bank account but not yet cleared or credited to the available balance.

Check Register

A record book or digital log used to track checks written, deposits made, and current balance in a checking account.

Cash Balance

The amount of cash a company or individual has on hand, reflecting the liquid assets available for immediate use.

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a designated entity.