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1) IBM expects to pay a dividend of $5 next year and expects these dividends to grow at 77% a year. The price of IBM
1) IBM expects to pay a dividend of $5 next year and expects these dividends to grow at 77% a year. The price of IBM is $85 per share. What is IBM's cost of equity capital?
2) Since your first birthday, your grandparents have been depositing $1,200into a savings account on every one of your birthdays. The account pays 9%
interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to:
A.$69,386.25
B.$59,473.93
C.$29,736.97
D.$49,561.61
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