Merrell Enterprises' Stock Has an Expected Return of 14

question 35

Multiple Choice

Merrell Enterprises' stock has an expected return of 14%.The stock's dividend is expected to grow at a constant rate of 8%, and it currently sells for $50 a share.Which of the following statements is CORRECT?

• A) The stock's dividend yield is 8%.
• B) The current dividend per share is $4.00.
• C) The stock price is expected to be $54 a share one year from now.
• D) The stock price is expected to be $57 a share one year from now.
• E) The stock's dividend yield is 7%.

Consider the role of self-categorization in social influence, emphasizing how individuals perceive and align with group norms.

Understand the characteristics and behaviours of minorities that can challenge and influence the majority viewpoint.

Recognize the dual-process model of minority and majority influence as proposed by Moscovici.

Identify the psychological effects of being in a minority and how it influences thinking patterns.

---

Definitions:

Equilibrium

A state in economics where supply equals demand, leading to a stable situation where there is no inherent tendency for change.

Fiscal Policy

The use of government spending and taxation to influence the economy, including its growth rate, inflation, and unemployment levels.

Legislation

Laws that have been enacted by a legislature or governing body.

American Recovery

A reference to the efforts, policies, and programs aimed at recovering from economic downturns in the United States, like the response to the 2008 financial crisis.