High Tech Chip Company Paid a Dividend Last Year of $2.50.The

question 64

Multiple Choice

High Tech Chip Company paid a dividend last year of $2.50.The expected ROE for next year is 12.5%.An appropriate required return on the stock is 11%.If the firm has a plowback ratio of 60%,the dividend in the coming year should be

• A) $1.00
• B) $2.50
• C) $2.69
• D) $2.81
• E) none of these

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Definitions:

Phobias

An intense, irrational fear of specific objects, situations, or activities that poses little to no actual danger.

Exposure Therapy

A psychological treatment method that involves confronting feared or traumatic memories, objects, or situations directly to reduce their associated anxiety.

Obsessive-Compulsive Disorder

A psychiatric condition marked by persistent, intrusive thoughts (obsessions) and repetitive actions (compulsions).

Systematic Desensitization

A behavioral therapy technique used to gradually reduce anxiety or phobia by having the patient confront a feared object or context in a controlled manner.