What Is the Required Return for a Stock That Has

question 88

Multiple Choice

What is the required return for a stock that has a 6% constant-growth rate,a price of $25,an expected dividend of $2,and a P/E ratio of 10?

• A) 5%
• B) 10%
• C) 14%
• D) 22%

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Definitions:

Facial Expression

The movement of the muscles beneath the skin of the face, often used as non-verbal communication to convey emotional states.

Grimace

A facial expression often involving the wrinkling of the forehead and nose, and tightening of the jaws, indicating discomfort, disapproval, or pain.

Fear

An emotional response to perceived threats or danger, often triggering a fight or flight response.

James-Lange Theory

A theory of emotion that suggests emotions arise from physiological reactions to events, rather than causing those reactions.