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Use the Following Information to Answer the Question(s)below

question 11

Multiple Choice

Use the following information to answer the question(s) below.
Wyatt Oil,an all-equity financed firm,has just reported EPS of $4.00 per share.Despite an economic downturn,Wyatt is confident regarding its current investment opportunities,but due to the current financial crisis,Wyatt does not wish to fund these investments externally.Wyatt's board has therefore decided to suspend its stock repurchase plan and cut its dividend to $1 per share (from its current level of $2 per share) and retain these funds instead.The firm just paid its current dividend of $1.00 per share and expects to keep its dividend at $1 per share next year as well.In subsequent years,it expects its growth opportunities to slow,and it will still be able to fund its growth internally with a target 40% dividend payout ratio,and reinitiating its stock repurchase plan for a total payout rate of 60%.All dividends and repurchases occur at the end of each year.
Wyatt's existing operations are expected to generate the current level of earnings per share in the future.Assume that the return on new investments is 16% and that reinvestments will account for all future earnings growth.Wyatt's current equity cost of capital is 12%.
-Wyatt's current stock price is closest to:

Grasp the concept and importance of effective conflict management styles in organizational settings.

Identify the categories of communication and the role of non-verbal elements in effective communication.

Recognize the significance of a values-based organizational culture in ethical decision-making and conflict resolution.

Learn about the RADAR model and its application in ethical dilemma management within organizations.

Definitions:

Metacognition

An awareness and understanding of one’s own thought processes, often referred to as "thinking about thinking."

Problem Solving

The process of identifying solutions to difficult or complex issues through analytical thought, creativity, and logical reasoning.

Distributive Justice

The principle concerned with the fair allocation of resources among diverse members of a community.

Autonomous Morality

The stage where individuals recognize the flexibility of rules and laws, basing their judgments on the intentions behind actions rather than the actions themselves.