Tangshan China's Stock Is Currently Selling for $160

question 5

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) 8.6%
• C) 9.5%
• D) 10.6%

---

Definitions:

Extramarital Affair

A sexual relationship between a married person and someone who is not their spouse.

Grand Jury

A legal body empowered to conduct official proceedings to investigate potential criminal conduct and to determine whether criminal charges should be brought.

Roe V. Wade

1973 U.S. Supreme Court decision requiring states to permit first-trimester abortions.