A company is expected to pay a dividend of $1.90 next year. Dividends are expected to grow at a constant rate of 3% per year, and the stock price is currently $12.50. The company's marginal tax rate is 40%. Compute the cost of internal equity

The answer is 18.2%

Explanation:

To calculate the cost of internal 1.9equity here, we employ 'dividend growth method.

The formula is:

(D÷P) + g

Where D is expected dividend to be paid

P is the current share price.

g is growth rate

D - $1.90

P - $12.50

g - 3% or 0.03

(1.90÷12.50) + 0.03

=0.152 + 0.03

0.182

Expressed as a percentage:

0.182 x 100%

18.2%

answer; /// i believe the correct answers are (b) change in population and (e) future expectation of check first, good luck

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.