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:

Population

The total number of individuals or inhabitants in a specific area or region at a certain time.

Principle Of Population

A theory suggesting that population growth is potentially exponential while the growth of the food supply or other resources is linear.

Subsistence

The minimum level of resources (food, shelter, clothing) that is required for individuals to survive.

Thomas Malthus

An English scholar and demographer known for his theory that population growth will always tend to outrun the food supply and that betterment of humankind is impossible without strict limits on reproduction.