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,an expected dividend of $3,and a sustainable growth rate of 8%?

• A) It has a required return of 15.14%.
• B) It has a dividend yield of 7.35%.
• C) The stock price is expected to be $45 next year.
• D) It has a capital appreciation rate of 7.14%.

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Definitions:

Tuberculin Syringe

A small syringe with a fine needle, specifically designed for administering tuberculin tests.

mL

Milliliters, a unit of volume in the metric system equal to one-thousandth of a liter.

mg

Milligrams, a unit of mass equal to one thousandth of a gram.

Insulin Syringe

A syringe designed specifically for injecting insulin, often marked with fine units of measurement for precise doses.