Daniel's Enterprises Has a Beta of 1

question 315

Multiple Choice

Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is currently selling for $12 a share. The overall stock market has an 11 percent rate of return and a risk premium of 8
Percent. What is the expected rate of return on Daniel's Enterprises stock?

• A) 10.00 percent
• B) 15.85 percent
• C) 16.67 percent
• D) 18.84 percent
• E) 19.06 percent

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Definitions:

CSR Activities

Corporate Social Responsibility actions undertaken by companies to positively impact society, the environment, and their communities.

Internal Attributions

The process of explaining behavior as being caused by internal characteristics of the individual rather than external factors.

External Attributions

The process of ascribing the cause of an observed behavior to situational factors outside the individual, rather than to internal dispositions.

Effective Performance

The degree to which objectives are achieved and the extent to which targeted problems are solved in a timely and cost-efficient manner.