Salted Chips Company Paid a Dividend Last Year of $2

question 66

Multiple Choice

Salted Chips Company paid a dividend last year of $2.50. The expected ROE for next year is 12.5%. An appropriate required return on the stock is 11%. If the firm has a plowback ratio of 60%, the dividend in the coming year should be

• A) $1.00.
• B) $2.50.
• C) $2.69.
• D) $2.81.
• E) None of the options are correct.

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Definitions:

Slander

The verbal communication of false statements harmful to a person's reputation.

Untruthful Statements

Declarations or claims that are not accurate, misleading, or false.

Trespass

An unlawful entry onto someone's property without permission.

Accidental Tunneling

Unintended or unexpected creation of a passage or communication channel, often used in the context of computer networks or security breaches.