What Is the Required Return for a Stock That Has

question 88

Multiple Choice

What is the required return for a stock that has a 6% constant-growth rate,a price of $25,an expected dividend of $2,and a P/E ratio of 10?

• A) 5%
• B) 10%
• C) 14%
• D) 22%

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Definitions:

Audiogram

a graphical representation of a person's hearing ability, plotting the threshold of hearing for various frequencies against volume level.

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A suffix denoting something written or recorded in a specified way, often used in medical and scientific terminology.

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An antibiotic used to treat various bacterial infections.

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A class of drugs that block the action of acetylcholine in the brain, used to treat various medical conditions.