Suppose the Risk-Free Interest Rate Is 4

question 65

Multiple Choice

Suppose the risk-free interest rate is 4%.If Nielson borrows $150 million today at this rate and uses the proceeds to pay an immediate cash dividend,then according to MM,the expected return of Nielson's stock just alter the dividend is paid would be closest to:

• A) -17.5%
• B) -12.5%
• C) 12.5%
• D) 17.5%

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Definitions:

Meditation

A practice where an individual uses a technique to focus their mind on a particular object, thought, or activity to achieve a mentally clear and emotionally calm state.

Hypnosis

A state resembling trance characterized by heightened focus, greater suggestibility, and an enhanced imagination, commonly employed for therapeutic benefits.

Stimulants

Substances that increase alertness, attention, and energy by raising the levels of key chemicals in the brain and body.

Propensity

An inclination or natural tendency to behave in a certain way.