Confusion Corp Is Expected to Pay a Dividend of $2

question 33

Multiple Choice

Confusion Corp is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. Analysts expect the price of Confusion Corp shares to be $22 a year from now. The beta of Confusion Corp's stock is 1.25. The market's required rate of return on Confusion's stock is

• A) 14.0%.
• B) 17.5%.
• C) 16.5%.
• D) 15.25%.
• E) None of the options are correct.

---

Definitions:

Job Classifications

A system that categorizes jobs based on criteria such as responsibilities, skills required, and the complexity of tasks, often used for hierarchical organization and payroll.

JIT

Just-In-Time manufacturing is a management strategy that aligns raw-material orders from suppliers directly with production schedules to improve efficiency and reduce inventory costs.

Competitive Advantage

The conditions that allow a company or country to produce goods or services more effectively than competitors, leading to greater profits and market share.

JIT

Just-in-Time is a management strategy that aligns raw-material orders from suppliers directly with production schedules, aiming to reduce inventory costs.