Suppose a Firm's Price/earnings Ratio Is 10

question 26

Multiple Choice

Suppose a firm's price/earnings ratio is 10.It expects to pay a dividend of $1.20 per share to maintain a 60% payout ratio.What is the firm's required return if its return on equity is 13.5%?

• A)14.10%
• B)13.20%
• C)12.30%
• D)11.40%

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Definitions:

Situational Influences

External factors that can impact consumer behavior at the time of purchase, including physical environment, social surroundings, time perspective, and purchase reason.

Situational Influences

External factors that affect consumer behavior and decision-making, including physical, social, and temporal conditions.

Antecedent States

Psychological states or conditions that precede and influence consumer behavior and decision-making.

Consumer Involvement

The degree of interest and importance that consumers attribute to the purchase of a specific product or service.