Exhibit 12.1 Use the Information Below for the Following Problem(S)

question 98

Multiple Choice

Exhibit 12.1
Use the Information Below for the Following Problem(S)
Assume that the dividend payout ratio will be 65 percent when the rate on long-term government bonds falls to 8 percent. Since investors are becoming more risk averse, the equity risk premium will rise to 7 percent and investors will require a 15 percent return. The return on equity will be 12 percent.
-Refer to Exhibit 12.1.To what price will the market rise if the earnings expectation is $22.00 per share?

• A) $183.26
• B) $132.41
• C) $198.66
• D) $71.28
• E) $14.30

Understand the role of nonverbal communication in conveying messages.

Recognize the significance of upward communication for information flow within organizations.

Identify effective communication strategies for dealing with sensitive or emotionally charged issues.

Understand the concept of grapevine communication and its implications within an organization.

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National Farm Workers Association

An organization formed in 1962 to improve the working and living conditions of farm workers in the United States, later becoming part of the United Farm Workers labor union.

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Laws or legal statutes passed by a governing body, such as a parliament or congress, intended to regulate, authorize, outlaw, or otherwise direct social behavior.

American Culture

The set of customs, traditions, language, legal and political systems, and social norms that characterize the United States and its inhabitants.