Old Quartz Gold Mining Company Is Expected to Pay a Dividend

question 38

Multiple Choice

Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year.Dividends are expected to decline at the rate of 2% per year.The risk-free rate of return is 6% and the expected return on the market portfolio is 14%.The stock of Old Quartz Gold Mining Company has a beta of -0.25.The intrinsic value of the stock is ______.

• A)$80.00
• B)$133.33
• C)$200.00
• D)$400.00
• E)none of the above

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Definitions:

Pedal Reserve

The distance or amount of pedal movement remaining after the brake pedal has been depressed to a point where the brakes engage.

Pedal Travel

The distance the brake or clutch pedal moves from its rest position to the point of engagement.

Integral Rear Calipers

Brake calipers located at the rear of a vehicle that are integrated with other brake system components to enhance braking efficiency.

Threading

The process of creating a screw thread on a cylinder or cone to allow for parts to be screwed together.