Use the Following Information to Answer the Question(s)below

question 21

Multiple Choice

Use the following information to answer the question(s) below.
Taggart Transcontinental pays no dividends,but spent $4 billion on share repurchases last year.Taggart's equity cost of capital is 13% and the amount spent on repurchases is expected to grow by 5% per year.Taggart currently has 2 billion shares outstanding.
-Taggart's market capitalization is closest to:

• A)$25 billion.
• B)$31 billion.
• C)$40 billion.
• D)$50 billion.

---

Definitions:

Self-report Personality Inventory

A type of psychological test wherein individuals answer questions about themselves, used to assess personality traits and psychological conditions.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often leading to an oversimplification of cause and effect.

Psychoanalytic Theory

A theory of psychology and psychotherapy developed by Sigmund Freud that emphasizes unconscious motives and conflicts.

Personality

This refers to individual differences in characteristic patterns of thinking, feeling, and behaving.