Turquoise electronics, inc. paid a dividend of $1.87 last year. if the firm's growth in dividends is expected to be 10 percent next year and then zero thereafter, what is its cost of equity capital if the price of its common shares is currently $25.71?

8.00%

Explanation:

Data provided in the question:

Dividend paid last year, D0 = $1.87

Dividend growth rate, g = 10%

Current Price of its common shares = $25.71

Now,

The dividend next year = D0 × (1 + g)

= $1.87 × (1 + 0.10)

= $2.057

Thus,

The cost of equity = [ D1 ÷ ( Current price ) ] × 100%

= [ $2.057 ÷ $25.71 ] × 100%

= 0.08000 × 100%

= 8.00%

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.

the answer is a. $209,000