The Dividend Payout Ratio for the Aggregate Market Is 50

question 39

Multiple Choice

The dividend payout ratio for the aggregate market is 50 percent,the required rate of return is 16 percent,and the expected growth rate for dividends is 6 percent.Compute the current earnings multiple.

• A) 5
• B) 2.81
• C) 7.5
• D) 4
• E) None of the above

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Definitions:

Agreeableness

A personality trait characterized by qualities such as being kind, cooperative, and sympathetic towards others.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty or diligence.

Selective Optimization

A strategy of focusing on and optimizing key life domains for better overall functioning, often used in the context of aging.

Compensation Viewpoint

A perspective that suggests individuals may develop certain traits or behaviors as a way to compensate for or overcome disabilities or deficiencies.