What Is the Required Rate of Return on a Share

question 36

Multiple Choice

What is the required rate of return on a share that is expected to pay a constant dividend of $3.60 in perpetuity and is priced at $27.50?

• A)13.09% p.a.
• B)10.75% p.a.
• C)11.00% p.a.
• D)Insufficient information to determine its price

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Definitions:

Postcentral Gyrus

The region in the parietal lobe of the brain where the primary somatosensory cortex is located, responsible for processing tactile information.

Broca's Area

Broca's area is a region in the frontal lobe of the dominant hemisphere (usually the left) of the brain with functions linked to speech production.

Produce Language

The capacity to generate words, sentences, and discourse to communicate thoughts, ideas, and emotions.