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:

Formal Labour Market

The sector of the economy that involves employment relationships officially recognized by legal and regulatory frameworks, often characterized by regular salaries and benefits.

Hegemonic Masculinity

A concept that describes the practices that promote the dominant social position of men, and the subordinate social position of women, emphasizing the cultural dominance of certain masculine norms.

Heterosexual Masculinity

Social norms and cultural expectations associated with being a heterosexual male, often emphasizing traditional roles and behaviors.

Intersectional Approach

An analytical framework which posits that various social identities (such as race, gender, sexuality, and class) interact on multiple levels, contributing to systemic injustice and social inequality.