What Is the Required Return for a Stock That Has

question 18

Multiple Choice

What is the required return for a stock that has a constant-growth rate of 3.3%,a price of $25,an expected dividend of $2.10,and a P/E ratio of 14.4?

• A) 12.40%
• B) 10.92%
• C) 11.70%
• D) 11.26%

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Definitions:

Transformational Leadership

A leadership style that inspires and motivates followers to exceed their own interests for the good of the group or organization.

Elitist

Pertaining to or reflective of the belief that a society or system should be led by an elite group of individuals.

Anti-democratic

Referring to principles, actions, or ideologies that oppose democracy, which is a system of government where power is vested in the hands of the people, often through elected representatives.

Elitist

Pertaining to a belief or attitude that a select group of people with a certain ancestry, intrinsic quality, high intellect, wealth, or who have specific, desirable affiliations are entitled to lead or enjoy special status.