1.) A music streaming company, referred to as "TunePlay Inc.", paid an annual dividend of...
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Finance
1.) A music streaming company, referred to as "TunePlay Inc.", paid an annual dividend of $2.29 per share on its common stock to its shareholders, who were mostly musicians. The company increases its dividend by 3.10% every year, just like the increase in the number of new artists on the platform. If the current stock price is $38.20 per share, what is the cost of equity for this company?
a.)
9.28%
b.)
9.09%
c.)
8.59%
d.)
8.84%
e.)
9.65%
2.) John takes out a loan of $10,000 from Bank A for a duration of four years. Bank A requires him to make an annual payment of $3,223.73 at the end of each year. What is the annual interest rate charged by Bank A on this loan?
A.) 10 percent
B.) 9 percent
C.) 11 percent
D.) 12 percent
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