Cartwright Brothers' Stock Is Currently Selling for $40 a Share

question 61

Multiple Choice

Cartwright Brothers' stock is currently selling for $40 a share. The stock is expected to pay a $2 dividend at the end of the year. The stock's dividend is expected to grow at a constant rate of 7 percent a year forever. The risk-free rate (rRF) is 6 percent and the market risk premium (rM - rRF) is also 6 percent. What is the stock's beta?

• A) 1.06
• B) 1.00
• C) 2.00
• D) 0.83
• E) 1.08

Comprehend the strategic use of pay surveys in benchmarking and setting competitive compensation.

Analyze the challenges and criticisms of pay policies like minimum wage laws and comparable-worth policies.

Understand the concept of a 95% confidence interval and its interpretation.

Calculate the 95% confidence interval for a given sample mean and standard deviation or standard error.