What Return on Equity Do Investors Seem to Expect for a Firm

question 29

Multiple Choice

What return on equity do investors seem to expect for a firm with a $55 share price,an expected dividend of $5.50,a beta of .9,and a constant growth rate of 5.5%?

• A) 9.00%
• B) 10.00%
• C) 13.95%
• D) 15.50%

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Definitions:

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