What are dividend payments?
a) payments made to a company by investors for a share of the ownership of that company.
b) incremental increases in the value of the stock held by an investor due to rises in share price.
c) the difference between the original cost price of a share and the price an investor receives when that share is sold.
d) a share of the profits paid to each shareholder on the basis of the number of shares they hold.

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?