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:

Prosocial Behavior

Efforts made to assist others, which involve practices like providing help, distributing, making donations, working together, and engaging in voluntary work.

Identical Twins

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High Costs

In economics and decision-making, this refers to situations where the expenses associated with an action or transaction are significant, potentially impacting the feasibility or desirability of that action.

Bystander Effect

A social psychological phenomenon that occurs when individuals do not offer help to a victim when other people are present.