Gates Industries Current Common Stock Dividend (Year 0) Is $2

question 68

Multiple Choice

Gates Industries current common stock dividend (year 0) is $2.50 per share and is expected to continue growing at a rate of 5% per year for the foreseeable future.Currently the risk-free rate is 7.5% and the estimated market risk premium (i.e., km - rf) is 8.3%.Value Line has estimated Gates Industries beta to be 1.10.Determine the expected price for Gates Industries common stock.

• A)$21.50
• B)$15.03
• C)$15.78
• D)$22.57

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Definitions:

High In Self-Monitoring

The characteristic of being highly aware of one's behavior and its effect on others, adjusting it according to the situation.

Low In Self-Monitoring

Describes individuals who are less likely to adjust their behavior or appearance according to social cues or contexts.

Self-Monitoring

The process of observing and regulating one's behavior in social situations to fit the expectations or norms of the environment.

Adjust Behaviour

The process of changing one's actions or reactions to better suit a new environment or set of conditions.