Exhibit 87
Use the Information Below for the Following Problem(S)
You

question 73

Multiple Choice

Exhibit 8.7
Use the Information Below for the Following Problem(S)
You expect the risk-free rate (RFR) to be 4 percent and the market return to be 10 percent. You also have the following information about three stocks.
$\begin{array}{ccccc}\text { Stock } & \text { Beta } & \begin{array}{c}\text { Current } \\\text { Price }\end{array} & \begin{array}{c}\text { Expected } \\\text { Price }\end{array} & \begin{array}{c}\text { Expected } \\\text { Dividend }\end{array} \\\hline \mathrm{A} & 1.5 & \$ 10 & \$ 11.50 & \$ 1.00 \\\mathrm{~B} & 1.1 & \$ 27 & \$ 30 & \$ 0.00 \\\mathrm{C} & 0.8 & \$ 35 & \$ 36 & \$ 1.50\end{array}$

-Refer to Exhibit 8.7.What are the required rates of return for the three stocks (in the order A,B,C) ?

• A) 13.0%, 10.6%, 8.8%
• B) 15.0%, 11.1%, 2.9%
• C) 18.7%, 11.1%, 8.8%
• D) 21.7%, 10.0%, 6.9%
• E) 25.0%, 11.1%, 7.1%

Define sustainability as per the Dow Jones Sustainability Index and its significance.

Explain the function and relevance of a strategy map in implementing the BSC.

Differentiate between strategic objectives and strategic initiatives within the balanced scorecard framework.

Understand the concept of a sustainability balanced scorecard and its creation methods.

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Definitions:

Unsolicited Proposals

Unsolicited proposals are those submitted by an individual or organization not in response to a specific request, often aiming to pitch an idea, product, or service that the proposer believes could benefit the recipient.

Sales Message

A written or spoken communication aimed at persuading potential customers to purchase a product or service.

Common-Ground Persuasion

A persuasive technique that seeks to establish mutual understanding or shared beliefs between the persuader and the audience to enhance the effectiveness of the message.

Problem

An obstacle, issue, or uncertain situation that requires a solution.