Brevik Builders Has an Expected ROE of 25

question 15

Multiple Choice

Brevik Builders has an expected ROE of 25%.Its dividend growth rate will be __________ if it follows a policy of paying 30% of earning in the form of dividends.

• A) 5.0%
• B) 15.0%
• C) 17.5%
• D) 45.0%

Apply the concept of inverse demand function in economic analysis.

Calculate and interpret the price elasticity of demand for various commodities.

Analyze how changes in price affect demand using elasticity concepts.

Understand the role of income elasticity of demand in consumer behavior.

---

Definitions:

Actor/Observer Bias

The tendency to attribute one's own actions to external factors, while attributing others' actions to their character or disposition.

Fundamental Attribution Error

The tendency for observers to attribute others' behaviors to their character rather than to external factors.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.

Personal Attribution

The process of ascribing the cause or reason for someone’s behavior to their personal characteristics or dispositions.