Given the Data Below for the Zoom Corporation,its Required Return

question 132

Multiple Choice

Given the data below for the Zoom Corporation,its required return is
1.Beta = 0.8
2.Expected price appreciation = 7%
3.Market risk premium = 8%
4.Risk free rate = 4%
5.Next year's dividend = $1.00
6.Current market price = $50

• A)10.4%.
• B)12.0%.
• C)12.4%.
• D)15.0%.

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Definitions:

Negative Feedback

A regulatory mechanism in which a stimulus causes an opposing output in order to maintain an ideal level of whatever is being regulated.

Calcium Ion

A vital mineral in the body, serving important roles in cellular signalling, muscle function, and bone health.

Respiratory System

The complex network of organs and structures responsible for the intake of oxygen and the exhalation of carbon dioxide in living organisms.

Blood pH

The measure of acidity or alkalinity of the blood, with a normal range for human blood typically between 7.35 and 7.45, indicating a slightly alkaline state.