The last paid dividend is $4 for a share of common stock that is currently selling for $50. what is the cost of common equity if the long-term growth rate on dividends for the firm is expected to be 8%?

16.64%

Explanation:

The computation of the cost of common equity is shown below:

= (Current year dividend) ÷ (Current selling price of common stock) + Growth rate

where,  

Current year dividend

= $4 + $4 × 8%

= $4 + 0.32

= $4.32

The other items rate would remain same

Now put these values to the above formula  

So, the value would equal to

= ($4.32) ÷ (50) + 8%

= 8.64% + 8%

= 16.64%

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'