Risk Metrics Company Is Expected to Pay a Dividend of $3.50

question 80

Multiple Choice

Risk Metrics Company is expected to pay a dividend of $3.50 in the coming year.Dividends are expected to grow at a rate of 10% per year.The risk-free rate of return is 5% and the expected return on the market portfolio is 13%.The stock is trading in the market today at a price of $90.00. What is the market capitalization rate for Risk Metrics

• A)13.6%
• B)13.9%
• C)15.6%
• D)16.9%
• E)None of the options

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Definitions:

Henna

A natural dye prepared from the plant Lawsonia inermis, used for coloring hair and decorating the skin.

Social Class

A division of a society based on social and economic status, influencing individuals' opportunities, lifestyles, and attitudes.

The Cross

signifies a principal symbol of the Christian religion, representing the crucifixion of Jesus Christ and his redemption of Christians.

Christianity

A monotheistic religion based on the life and teachings of Jesus Christ and the Bible as sacred scriptures.