Exhibit 12.4 Use the Information Below for the Following Problem(S)

question 87

Multiple Choice

Exhibit 12.4
Use the Information Below for the Following Problem(S)
Assume that the dividend payout ratio will be 45 percent when the rate on long term government bonds falls to 9 percent. Since investors are becoming more risk averse, the equity risk premium will rise to 7 percent and investors will require a 16 percent return. The return on equity will be 14 percent.
-Refer to Exhibit 12.4.To what price will the market rise if the earnings expectation is $10.00?

• A) $71.40
• B) $66.30
• C) $54.20
• D) $77.00
• E) $51.10

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Definitions:

Postmodern Environmentalism

A movement or perspective that critiques traditional environmentalism, emphasizing the role of ideology, media, and consumer culture in shaping environmental issues.

Climate Justice

A perspective that frames global warming as a moral issue, proposing that those who are least responsible for climate change tend to suffer its worst consequences.

Bisphenol A (BPA)

A chemical compound used in manufacturing certain types of plastic and resin, including some food containers and water bottles, known for potential health risks related to hormone disruption.

Modern Environmental Movement

Beginning in the 1960s, the second major stage of the environmental movement; focused on the environmental consequences of new technologies, oil exploration, chemical production, and nuclear power plants.