Which of the Following Is True for a Firm Having

question 110

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 22 percent
• 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 $42 = $3/(r - .08)

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Definitions:

Organizational Citizenship

The voluntary commitment of employees to go beyond their contractual tasks and roles, contributing to the overall effectiveness and culture of the organization.

Behavioral-Based

Approaches or strategies focused on understanding and influencing human behavior through observation and data.

Result-Based

An approach that focuses on achieving specific outcomes or results rather than the process used to achieve them.

Trait-Based

An approach focusing on specific, identifiable qualities or characteristics that can predict behavior and performance.