A Company Paid a Dividend Last Year of $1

question 74

Multiple Choice

A company paid a dividend last year of $1.75. The expected ROE for next year is 14.5%. An appropriate required return on the stock is 10%. If the firm has a plowback ratio of 75%, the dividend in the coming year should be

• A) $1.80.
• B) $2.12.
• C) $1.77.
• D) $1.94.

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Definitions:

Society

Society refers to a group of individuals living together in a more or less ordered community, sharing customs, laws, and institutions.

Rousseau

Jean-Jacques Rousseau, an 18th-century philosopher known for his ideas on education, social contract theory, and political philosophy.

Hobbes

Thomas Hobbes was a 17th-century English philosopher known for his political philosophies, particularly the social contract theory detailed in his work "Leviathan".

Oedipus Complex

A psychoanalytic theory by Freud describing a child's feelings of desire for their opposite-sex parent and jealousy toward their same-sex parent.