Old Quartz Gold Mining Company Is Expected to Pay a Dividend

question 81

Multiple Choice

Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year.Dividends are expected to decline at the rate of 2% per year.The risk-free rate of return is 6% and the expected return on the market portfolio is 14%.The stock of Old Quartz Gold Mining Company has a beta of -0.25.The intrinsic value of the stock is _____.

• A) $80.00
• B) $133.33
• C) $200.00
• D) $400.00
• E) none of these

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Definitions:

Brand Equity

The value and strength of a brand that is determined by consumer perception, recognition, and loyalty.

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.

Brands

Names, terms, designs, symbols, or any other features that identify one seller's goods or services as distinct from those of other sellers.

Benefit

Refers to the value or advantage that customers obtain from a product or service, which meets their needs or solves their problems.