Torque Corporation Is Expected to Pay a Dividend of $1

question 57

Multiple Choice

Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year.Dividends are expected to grow at the rate of 6% per year.The risk-free rate of return is 5% and the expected return on the market portfolio is 13%.The stock of Torque Corporation has a beta of 1.2. What is the return you should require on Torque's stock

• A)12.0%
• B)14.6%
• C)15.6%
• D)20%
• E)None of the options

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Definitions:

Energy Sources

The origins or types of power, such as fossil fuels, renewable energy, or electricity, used to operate machinery, vehicles, and support human activities.

Supply Chain Sustainability

Practices and strategies in supply chains that promote environmental, economic, and social well-being over the long term.

Aggressive Targets

Goals set to achieve a significantly challenging objective, often requiring intense effort and resources.

Landfill Additives

are materials added to landfills to enhance decomposition, manage odors, or improve the breakdown of waste materials.