DT Industries Stock Is Valued at $10

question 17

Multiple Choice

DT Industries stock is valued at $10.40 a share.The firm pays annual dividends at an increasing rate of 2.5 percent annually.Next year's dividend will be $1.05 per share.What is the required return on this stock?

• A)10.00 percent
• B)11.50 percent
• C)12.60 percent
• D)13.50 percent
• E)14.80 percent

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Definitions:

Compensatory Approach

A strategy used in decision-making that involves offsetting deficiencies in one area with strengths in another, often applied in personnel selection and performance evaluation.

Predictors

Variables or factors that are used to estimate or anticipate future trends, behaviors, or outcomes.

Performing Well

Relates to the achievement of high levels of productivity, efficiency, and quality in work or task execution.

Drug Testing

The process of analyzing biological samples to detect the presence of illegal drugs or prescribed medications within an individual's system, often used for employment or safety reasons.