Given the Information Below, Calculate the Expected Growth Rate (G)

question 48

Multiple Choice

Given the information below, calculate the expected growth rate (g) of dividends, using the constant growth model P0 =
,
Beta = 1.75; rRF = 7 percent; rM = 11 percent; dividend payout ratio = 30 percent; rd = 10 percent (paid) on all long-term debt; P/E ratio = 10; sales = 5,000 units; sales price per unit = R5; variable cost per unit = R2; fixed cost = R1,000; ordinary shares outstanding = 5,000; long-term debt outstanding = R10,000; tax rate = 40 percent.Assume equilibrium exists in the market.

• A) 11.34%
• B) 6.54%
• C) 11.0%
• D) 10.68%
• E) 10.19%

Familiarize with the elements that support psychological well-being excluding materialism.

Analyze the paradoxical effects of material gain on well-being and happiness.

Investigate the therapeutic benefits of cognitive therapy and the influence of beliefs on well-being.

Understand the scope and importance of ethics in business.

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Definitions:

Organization's Values

Core principles and ethical standards that guide the behaviors, decisions, and operations of an organization.

Ethics Test

A tool or assessment designed to evaluate an individual's moral principles and their ability to distinguish right from wrong behavior in different situations.

Purified Idea

A concept that has been refined and clarified of unnecessary components to reveal its essence or core meaning.

Authority or Knowledge

The power or right to give orders, make decisions, and enforce obedience, or the possession of expertise and information in a particular area.