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.

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Definitions:

Coral Reef

Underwater ecosystems characterized by reef-building corals. Reefs form barriers to protect coastlines from waves and storms and are home to a diverse range of marine species.

Grassland Habitat

Areas where grasses predominate over other plant types, which support a varied mix of flora and fauna specialized to live in these environments.

Keystone Species

A species that plays a critical role in maintaining the structure of an ecological community, affecting many other organisms in the environment and helping to determine the types and numbers of various other species in the community.