Low Fly Airline Is Expected to Pay a Dividend of $7

question 123

Multiple Choice

Low Fly Airline is expected to pay a dividend of $7 in the coming year.Dividends are expected to grow at the rate of 15% per year.The risk-free rate of return is 6% and the expected return on the market portfolio is 14%.The stock of Low Fly Airline has a beta of 3.00.The intrinsic value of the stock is ______.

• A)$46.67
• B)$50.00
• C)$56.00
• D)$62.50
• E)none of the above

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Definitions:

Humanistic Approach

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual's experience.

Animal Research

Scientific studies conducted on animal subjects to gain insights into biology, behavior, diseases, and the testing of medicines and procedures intended for human use.

Behavioural Approach

A psychological perspective emphasizing observable behaviors and the ways in which they are learned from the environment.

Self-Concept

An individual's awareness and perception of themselves, including their beliefs, feelings, and thoughts about their own identity.