Zero Growth: Zephyr Electricals Is a Company with No Growth

question 25

Multiple Choice

Zero growth: Zephyr Electricals is a company with no growth potential. Its last dividend was $4.50, and it expects no change in future dividends. What is the current price of the company's stock given a discount rate of 9 percent?

• A) $40.50
• B) $50.00
• C) $45.00
• D) $500.00

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Definitions:

Organizational Effectiveness

The measure of how successfully an organization achieves its goals and objectives through efficient resource utilization, capability development, and adaptability.

Human Capital Strategies

Plans and practices that organizations employ to effectively manage and develop their workforce, optimizing the skills, knowledge, and abilities of their employees to achieve business objectives.

Gallup Organization

A global analytics and advice firm known for its public opinion polls and research on human behavior and organizational performance.

Revenue Per Employee

A financial metric that measures the average revenue generated by each employee within a firm.