Tayco Corporation Has Just Paid Dividends of $3 Per Share

question 14

Multiple Choice

Tayco Corporation has just paid dividends of $3 per share.The earnings per share for the company was $4.If you believe that the appropriate discount rate is 15% and the long term growth rate in dividends is 6%,and earnings is 6%,the firm's P/E ratio is

• A) 8.33
• B) 33.33
• C) 44.44
• D) 11.11
• E) None of the above

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Definitions:

Completion Rates

The percentage of participants who finish a given course, program, or study, often used as a metric of success or effectiveness.

Preferred Activity

An activity that an individual chooses or prefers over other options, often used in reinforcement learning and behavior modification strategies.

Response Deprivation Theory

A theory suggesting that a behavior can become reinforcing when access to that behavior is restricted below its baseline level of occurrence.

Baseline Occurrence

The rate at which a behavior occurs before any intervention or conditioning is applied.