Torque Corporation Is Expected to Pay a Dividend of $1

question 44

Multiple Choice

Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Torque Corporation has a beta of 1.2. What is the return you should require on Torque's stock?

• A) 12.0%
• B) 14.6%
• C) 15.6%
• D) 20%
• E) None of the options are correct.

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Definitions:

ICD-9-CM

The International Classification of Diseases, Ninth Revision, Clinical Modification; a system used in the United States to code and classify morbidity data from inpatient and outpatient records.

Classification

The process of organizing or categorizing objects, information, or phenomena into groups based on shared characteristics or criteria.

Characters

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ICD-10 Codes

A comprehensive classification system developed by the World Health Organization for coding diseases, symptoms, and health encounters, used globally for health management and epidemiological purposes.