The CEO of Harding Media Inc. has asked you to help estimate its cost of common equity. You have obtained the following data: current dividend, D0 = $0.85; current stock price, P0 = $22.00; and growth rate g = 6.00% (constant). The CEO thinks, however, that the stock price is temporarily depressed, and that it will soon rise to $40.00. Based on the dividend growth model, by how much would the cost of common change if the stock price changes as the CEO expects?

A C/PHN understands that in the Chain of Transmission for Lyme disease the opening in the skin caused by the tick bite is the:

The C/PHN will recommend the pneumococcal vaccine for which of the following clients? 

The nurse is teaching a pregnant client about reducing the risk for food and waterborne illness. Which statement, if made by the client, indicates a need for further teaching?

If a firm’s marginal tax rate is increased, this would, other things held constant, lower the cost of debt used to calculate its WACC. True or False? 

When applying the epidemiologic triad model to a community’s plan of care, which would the C/PHN address?

Suppose a firm has less than its optimal amount of debt. An increase in its use of debt to the point of its optimal capital structure will decrease its weighted average cost of capital. T/F

The Victor Rumsfeld Inc.’s dividend policy is under review by its board. Its projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its net income forecast is $600,000. If the company follows a residual dividend policy, how much in total dividends, if any, will it pay out?

A study is conducted to identify the relationship between exposure to farming chemicals and breast cancer. Two groups of women; one with breast cancer and another without breast cancer, provided information about exposure to farming chemicals. The risk of breast cancer related to exposure to farming chemicals was calculated. This is an example of which type of study?

20 years remain until the maturity of a bond that Crosscurrent Resolutions, Co. sold some time ago. It has a $1,000 par value, is non-callable and pays a 7.00% annual coupon semiannually. The bond currently sells for $925 and the company’s tax rate is 40%. What is the current component cost of debt for use in the WACC calculation?