As the Assistant to the CFO of Johnstone Inc

question 43

Multiple Choice

As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity.You have been provided with the following data: D? = $0.80; P? = $22.50; and g = 8.00% (constant) .Based on the DCF approach, what is the cost of common from reinvested earnings?

• A) 10.69%
• B) 11.25%
• C) 11.84%
• D) 12.43%
• E) 13.05%

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Definitions:

Behavioral Activation

A therapeutic intervention that focuses on engaging individuals in activities that are aligned with their personal values and interests to combat depression.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning and learning techniques.

Positive Consequences

Outcomes or effects that increase the likelihood of a behavior being repeated, due to rewarding or reinforcing qualities.

Contingency Management

A behavioral therapy technique that modifies behavior by altering the consequences, often through rewards or punishments, based on the occurrence or non-occurrence of target behavior.