Question: QUESTION 48 Bob's Beverages expects to pay dividends (D1) over the next 12 months of $3.50 per share, and the current price of common stock

 QUESTION 48 Bob's Beverages expects to pay dividends (D1) over the

QUESTION 48 Bob's Beverages expects to pay dividends (D1) over the next 12 months of $3.50 per share, and the current price of common stock is $60 per share. The expected growth rate is 10%. Compute the cost of Retained Earnings (Ke): OA. A. 25% OB.B. 22.5% C.C. 6.85% D.D. 15.83% QUESTION 49 The cost of debt is usually the cheapest form of capital because: A. A. Companies can expense, deduct interest before calculating taxable income. B. B. It is easy to obtain from lenders. C.C. Has a higher return than common equity for investors. D.D. None of the above QUESTION 50 After learning the concepts in chapters 1,9,10 & 11, you: A. A. Have an understanding how and why companies raise capital B.B. Understand the difference between a money market and a capital market. C.C. Understand how bonds are priced. D.D. All of the above. Click Save and Submit to save and submit. Click Save All Answers to save all answers

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