Zeta Corp Has an ROE of 15%; Has Just Paid

question 70

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:

Electrolyte Balances

The levels of minerals in the body that have an electric charge, crucial for nerve and muscle function, hydration, blood pH, and other processes.

Sodium

A chemical element (symbol Na) that is highly reactive and essential for nerve and muscle function in the human body, commonly found in salt.

Kidney Tubules

The small tubes in the kidneys where reabsorption and secretion occur, playing a crucial role in the formation of urine.

Potassium

A chemical element with the symbol K and atomic number 19, essential for many bodily functions, including normal heart and muscle function.