Company ABC just paid an annual dividend of $3.55 on its common stock. The firm increases its dividend by 3.55 percent annually. What is the company's cost of equity if the current stock price is $43.24 per share?

8.5%

Explanation:

Company ABC just paid an annual dividend of $3.55

The firm increases its dividend by 3.55 percent annually

The current stock price is $43.24

Therefore the company cost of equity can be calculated as follows

= 3.55 × (1+3.55/100)/43.24+3.55/100

= 3.55 × 1+0.0355/43.24+0.0355

= 3.55 × 1.0355/43.2755

= 3.6760/43.2755

= 0.085× 100

= 8.5%

Hence the company cost of equity is 8.5%

correct, but each time you dont pay the price of the penalty can increase.

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.