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

question 20

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors has a share price of $50.00. Its dividend was $2.50, and you expect Nielson Motors to raise its dividend by approximately 6% per year in perpetuity.
-Vacinox is a biotechnology firm that is about to announce the results of its clinical trials of a potential new vaccine.If the trials are successful,Vacinox stock will be worth $80 per share.However,if the trials are not successful,then Vacinox stock will only be worth $12 per share.If on the morning that the announcement is schedule,Vacinox stock is trading for $60.96,then the probability that investors place on the trials being successful are closest to:

• A) 48%
• B) 50%
• C) 60%
• D) 72%

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Definitions:

Competitive Advantages

Features or attributes that allow a company to outperform its competitors.

Economies of Scale

Companies gain financial benefits related to their operational size, experiencing a reduction in cost for each unit as their scale expands.

Geographic Markets

The classification of markets based on geographical boundaries, which can influence marketing strategies due to varying preferences, regulations, and economic conditions.

Business Strategy

A plan of action designed to achieve a long-term or overall aim within the business.