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

question 20

Multiple Choice

Zeta Corp has an ROE of 15%; has just paid a dividend of $1.55; a pays 110% of its earnings out in dividends,and the appropriate discount rate is 20%; what is the current stock price?

• A) $ 8.80
• B) $ 10.51
• C) $ 8.00
• D) $ 7.10

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Definitions:

Internal Integration

The process of ensuring that various parts of an organization work together efficiently and cohesively.

Structural Adaptation

The process by which organizations or entities change their internal framework to better respond to external pressures, demands, or opportunities.

Shared Values

The fundamental beliefs and principles that guide the behavior of individuals within an organization or community.

Observable Culture

The aspects of an organization's culture that can be seen or noticed through behaviors, rituals, and symbols.