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:

Foraging Society

A society that primarily subsists by hunting, fishing, and gathering wild food, rather than cultivating crops or domesticating animals.

Child Socialization

The process through which children learn the norms, values, behavior, and social skills appropriate to their society.

Food Production

The process of creating food products from raw ingredients through various methods like farming, harvesting, and manufacturing.

Hollywood-Fuelled Desire

A phenomenon where the media produced in Hollywood significantly shapes individuals' aspirations and wants, often promoting glamorized lifestyles and narratives.