What Is the Current Value of the Common Stock of Clump

question 74

Multiple Choice

What is the current value of the common stock of Clump Dump Kitty Litter, Ltd., if you know the current dividend yield is 6.14%, the PE is 16, and the annual dividend is $1.35?

• A) $21.60
• B) $21.99
• C) $8.29
• D) $98.24

---

Definitions:

Policy Action

Any action taken by a government or public authority to influence economic or social outcomes.

Domestic Exporters

Firms that produce goods within a country and sell them in foreign markets.

Maximum-Output Alternatives

Options within a production process that result in the highest level of output, utilizing resources to their fullest potential.

Specialization

The process by which individuals, firms, or countries concentrate on producing a narrow range of goods or services to gain greater efficiencies and boost economic output.