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:

Standard Deviation

A metric indicating the extent of spread or deviation among values in a collection.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values.

Age Group

A categorization of people based on their age, often used in research to compare differences or similarities in behaviors and characteristics.

Mean

A numerical indicator that signifies the mean value of a collection of figures, determined by totaling all the figures and then dividing by the count of those figures.