Dee's Fashions Has a Growth Rate of 3

question 73

Multiple Choice

Dee's Fashions has a growth rate of 3.2 percent and is equally as risky as the market while its stock is currently selling for $32 a share. The overall stock market has a return of 10.9 percent and a risk premium of 6.8 percent. What is the expected rate of return on this stock?

• A) 10.0 percent
• B) 9.2 percent
• C) 10.9 percent
• D) 11.3 percent
• E) 11.7 percent

---

Definitions:

Detouring Coalition

Child or other family member is the scapegoat for the family’s problems, parental conflict is taken out on the child, and stress is detoured from the real cause.

Hierarchical Structure

The organization of power and authority in a family.

Power

The ability or capacity to direct or influence the behavior of others or the course of events.

Cutoff

A predetermined point or limit beyond which something does not proceed or is not allowed.