If a Company Has a Current Stock Price of $45

question 14

Multiple Choice

If a company has a current stock price of $45, an EPS of $3/share; EPS growth rate of 10% and the investors rate of return is 15%, calculate the cash cow price.

• A) $18
• B) $19
• C) $20
• D) $21
• E) $22

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Definitions:

Technical Bias

Prejudices or inclinations in technological development or application that favor certain outcomes or groups over others, often unconsciously embedded.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group which can hinder performance.

Math Test

An examination or assessment that evaluates an individual's understanding and proficiency in mathematical concepts and skills.

True Ability

An individual's actual skill or aptitude in a certain area, dissociated from situational factors that might affect performance.