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:

Functionalists

A rephrased term for the functionalist perspective, emphasizing the sociological theory that views society as composed of interrelated parts working together for the greater harmony and stability of the whole.

Social Inequality

The existence of unequal opportunities and rewards for different social positions or statuses within a society.

Social Capital

The networks, relationships, and norms that facilitate collective action and cooperation within a society.

Cultural Capital

Non-financial social assets that promote social mobility beyond economic means, such as education, intellect, style of speech, dress, or physical appearance.