A company has stock which costs $41.50 per share and pays a dividend of $2.50 per share this year. The company's cost of equity is 7%. What is the expected annual growth rate of the company's dividends?

A) 0.98%
B) 1.96%
C) 2.94%
D) 3.92%


Answer: A

Business

You might also like to view...

Compensating balance agreements are held against short-term borrowings should

A) only be described in the footnotes to the financial statements. B) be separately reported in the current assets portion of the balance sheet. C) be separately classified as noncurrent assets on the balance sheet . D) not be shown on the balance sheet.

Business

In the field of engineering, DSS models might simulate the _____ environment.

A. business B. logical C. physical D. financial

Business

Which of the following is a key component of output in the input-process-output model?

A. performance as rated by those outside of the team B. How well the organization’s needs are met. C. performance as rated by those inside of the team D. the willingness of team members to accept turnover

Business

What can a presenter do to ensure that a podcast includes content that provides value to the audience?

A) Write a script and practice B) Make the podcast easy to find C) Choose content that will be relevant for a long time D) Commit to a regular podcast schedule E) Choose the best medium for the audience

Business