Crandle's Common Stock Is Currently Selling for $79

question 91

Multiple Choice

Crandle's common stock is currently selling for $79.00.It just paid a dividend of $4.60 and dividends are expected to grow at a rate of 5% indefinitely.What is the required rate of return on Crandle's stock?

• A) 11.11%
• B) 11.76%
• C) 12.2%
• D) 14.21%

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Definitions:

Demand Curves

A visual depiction showing how the price of a product relates to the amount people want to buy.

Supply Curves

Graphical representations of the relationship between the price of goods and the quantity that producers are willing to supply.

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage their use or generate revenue.

Government Salaries

The remuneration received by individuals employed by the government, including wages, benefits, and allowances.