The Cost of Equity: Tranquility Ltd Has Common Shares with a Price

question 13

Multiple Choice

The cost of equity: Tranquility Ltd has common shares with a price of $18.37 per share. The company paid a dividend of $1.50 yesterday, and dividends are expected to grow at 9 percent for three years and then at 2 percent thereafter. What is the implied cost of ordinary shares for Tranquility?

• A) 9%
• B) 10%
• C) 11%
• D) 12%

Describe the persuasion processes including the elaboration likelihood model and fear appeal.

Understand the dynamics of social perception changes over time (e.g., recency effect).

Recognize the discrepancy between attitudes and behaviors and its psychological implications.

Understand the components of love in relationship dynamics.

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Definitions:

Ownership

refers to the state or fact of possessing something, which can include tangible property or intangible rights.

Negotiate a Contract

The process of discussing and reaching an agreement on the terms of a contract, ensuring clarity and mutual understanding of expectations and responsibilities.

Concerns

Matters of interest or importance that require attention or action, often signaling potential issues needing to be addressed.

Respondents

Individuals or entities that provide answers or feedback in a survey or study.