Predictions about the future generally do not form the basis for fraud

Each team member must:

A) Focus on the team goal B) Have individual responsibilities to the team C) Participate, share with, and support the team D) All of the above

The cost of common equity using the dividend-growth model is

Berlioz Inc. is trying to estimate its cost of common equity, and it has the following information. The firm has a beta of 0.90, the before-tax cost of the firm's debt is 7.75%, and the firm estimates that the risk-free rate is 4% while the current market return is 12%. Berlioz stock currently sells for $35.00 per share. The firm pays dividends annually and expects dividends to grow at a constant rate of 5% indefinitely. The most recent dividend per share, paid yesterday, is $2.00. Finally, the firm has a marginal tax rate of 34%. A) 11.00%. B) 11.32%. C) 11.50%. D) 11.72%.