Omega Corp Has an ROE of 15%; Has Just Paid

question 54

Multiple Choice

Omega Corp has an ROE of 15%; has just paid a dividend of $1.55; a pays 0% of its earnings out in dividends,and the appropriate discount rate is 20%; what is the current stock price?

• A) $ 7.75
• B) $ 11.88
• C) $ 35.65
• D) $ 42.78

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Definitions:

Urea Crystals

Small, often whitish crystals that can form on the skin, especially in newborns, due to concentrated urine.

Chronic Renal Failure

A long-term medical condition where the kidneys lose their ability to filter waste and excess fluids from the blood effectively.

Chronic Renal Failure

A long-term decline in kidney function, which can lead to the accumulation of waste products and fluid imbalances in the body.

Metabolic Alkalosis

A disturbance in the body's acid-base balance, resulting in an increased blood pH.