Tangshan China's Stock Is Currently Selling for $160

question 31

Multiple Choice

Tangshan China's stock is currently selling for $160.00 per share and the firm's dividends are expected to grow at 5 percent indefinitely. Assuming Tangshan China's most recent dividend was $5.50, what is the required rate of return on Tangshan's stock?

• A) 7.3%
• B) 8.4%
• C) 9.5%
• D) 10.6%

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Definitions:

Lipotropins

Hormones produced by the anterior pituitary gland, involved in fat metabolism and the stimulation of lipolysis.

Pheromones

Chemical substances produced and released into the environment by animals, including humans, that affect the behavior or physiology of others of its species.

Allomones

Chemical substances produced and released by one species that affect the behavior of another species, often functioning as a defense mechanism or to attract mates.

Menstrual Cycle

The monthly cycle of changes in the female reproductive system, leading up to menstruation.