The Dividend Payout Ratio for the Aggregate Market Is 65

question 5

Multiple Choice

The dividend payout ratio for the aggregate market is 65 percent,the required rate of return is 13 percent,and the expected growth rate for dividends is 8 percent.Compute the current earnings multiple.

• A) 7
• B) 13
• C) 4.61
• D) 14.61
• E) None of the above

---

Definitions:

Reaction

A process in which chemical substances interact, leading to the rearrangement of their atomic connectivity and the formation of different substances.

Compound

A substance formed from two or more elements that are chemically combined in fixed proportions.

Common Name

A non-scientific or traditional name given to a substance or organism, often simpler and more widely used than its official name.

Organic Product

A compound predominantly composed of carbon and hydrogen atoms, typically resulting from the chemical reaction of organic substances.