What Return on Equity Do Investors Expect for a Firm

question 93

Multiple Choice

What return on equity do investors expect for a firm with a $55 share price,an expected dividend of $4.60,a beta of 0.9,and a constant growth rate of 3.5%?

• A) 9.87%
• B) 12.48%
• C) 13.95%
• D) 11.86%

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Definitions:

Self-Esteem

The subjective evaluation or appraisal of one's own worth, value, or significance.

Negative Thoughts

Involves patterns of thinking that are pessimistic, self-critical, or defeatist, and can affect one's mood and mental health.

Cognitive-Behavioral Therapy

A form of psychotherapy that aims to improve mental health by identifying and challenging negative thought patterns and behaviors and replacing them with healthier ones.

Major Depressive Disorder

A mental health disorder characterized by a persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.