Given the Data Below for the Zoom Corporation,its Expected Total

question 126

Multiple Choice

Given the data below for the Zoom Corporation,its expected total 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)7.0%.
• B)9.0%.
• C)12.0%.
• D)15.0%.

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Definitions:

Earned Income

Income derived from active participation in a business or trade, including wages, salaries, tips, and other compensation for services rendered.

Future Services

The future work or duties to be performed under the terms of a service contract or agreement.

Extreme Uncertainty

Situations where the variables and risks affecting an outcome cannot be measured or predicted accurately due to insufficient information or understanding.

Cash Collected

This term generally refers to the amount of money a company receives during a specific period, including revenues from sales and other sources.