Gremlin Industries Will Pay a Dividend of $1

question 8

Multiple Choice

Gremlin Industries will pay a dividend of $1.90 per share this year. It is expected that this dividend will grow by 4% per year each year in the future. The current price of Gremlin's stock is $23.50 per share. What is Gremlin's equity cost of capital?

• A) 11%
• B) 12%
• C) 14%
• D) 16%

---

Definitions:

Recommended

Suggested or advised as being particularly suitable or beneficial.

Find a Distraction

The act of diverting one's attention away from distressing thoughts or feelings to focus on something else, often for relief or relaxation.

Vent

To release or express emotions, thoughts, or feelings, often as a way of relieving stress or tension.

Wait

The act of staying in a place or delaying an action until a particular time or until something else happens.