The Dividend Payout Ratio for the Aggregate Market Is 55

question 61

Multiple Choice

The dividend payout ratio for the aggregate market is 55 percent,the required rate of return is 15 percent,and the expected growth rate for dividends is 7 percent.Compute the current earnings multiple.

• A) 3.93
• B) 78.6
• C) 6.88
• D) 39.3
• E) None of the above

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Definitions:

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and fear.

Emotionally Upset

A state of distress or disturbance in one's emotional equilibrium, often resulting from a specific event or situation.

Serotonin Levels

The concentration of serotonin, a neurotransmitter, in the human body that influences mood, emotional well-being, and several physical processes.

Natural Selection

A process in biological evolution where organisms with traits better suited to their environment are more likely to survive and reproduce.