Which of the Following Is True for a Firm Having

question 36

Multiple Choice

Which of the following is true for a firm having a stock price of $42,and expected dividend of $3,and a sustainable growth rate of 8 percent?

• A) it has a required return of 15.14percent.
• B) it has a dividend payout ratio of 37.5 percent.
• C) it has an ROE of 7.14 percent.
• D) it has a plowback rate of 7.14 percent.

---

Definitions:

Subordinate Words

Words that convey a lesser rank or importance and are typically used to combine with other words to form subordinate clauses.

Predisposed

Inclined or susceptible to a particular condition or outcome, often due to genetic or environmental factors.

Sensitive Period

An early period during the development of an organism when it is particularly responsive to environmental stimulation. Outside of this period, the same environmental events have less impact.

Skill Level

The degree of competence or proficiency an individual has in performing a particular task or activity.