What Is the Current Value of the Common Stock of Clump

question 7

Multiple Choice

What is the current value of the common stock of Clump Dump Kitty Litter, Limited if you know the current dividend yield is 6.14%, the PE is 16, and the annual dividend is $1.35?

• A)$21.60
• B)$21.99
• C)$8.29
• D)$98.24

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Definitions:

Government Securities

Financial instruments issued by a government to finance its public projects, which include bonds, treasury bills, and notes.

Money Supply

Money Supply refers to the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the United States' central banking system and setting monetary policy.