Which of the Following Is True for a Firm Having

question 36

Multiple Choice

Which of the following is true for a firm having a stock price of $42,an expected dividend of $3,and a sustainable growth rate of 8%?

• A) It has a required return of 15.14%.
• B) It has a dividend yield of 7.35%.
• C) The stock price is expected to be $45 next year.
• D) It has a capital appreciation rate of 7.14%.

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Definitions:

Shape Style

Formatting options in graphic design and document editing software that allow customization of shapes’ visual appearance.

Shape Height

A property in graphical software that specifies the vertical dimension of a shape or object.

Shape Width

A property of graphical objects in computing that refers to the extent or measurement of an object's side-to-side dimension.

Cell Shading

A technique used in visual applications, such as spreadsheets and graphic design, to fill cells with solid colors or patterns to differentiate or highlight them.