Which of the Following Amounts Is Closest to What Should

question 40

Multiple Choice

Which of the following amounts is closest to what should be paid for Overland ordinary equity? Overland has just paid a dividend of €2.25.These dividends are expected to grow at a rate of 5% in the foreseeable future.The required rate of return is 11%.

• A)€20.45
• B)€21.48
• C)€37.50
• D)€39.38
• E)€47.70

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Definitions:

Financial Risk

The possibility of losing money or the financial uncertainty involved in an investment, business venture, or other financial activities.

Project Risk

Potential problems that could endanger the success of a project, including uncertainties and potential negative events.

Organizational Risk

Refers to the potential for losses or other adverse outcomes that an organization may face due to various internal and external factors.

Strategic Risk

Involves risks that affect the long-term goals, direction, and overall strategy of an organization.