Berg Inc. has just paid a dividend of $2. Its stock is now selling for $48 per share. The firm is half as risky as the market. The expected return on the market is 14%,

and the yield on U.S. Treasury bonds is 11%. If the market is in equilibrium, what rate of growth is expected?
A) 13%
B) 10%
C) 4%
D) 8%
E) -2%


D

Business

You might also like to view...

Bank supervisors around the world use a common measurement standard for capital adequacy, based on agreement known as the _____.

A. ?Bank Holding Record B. balance sheet C. ?Redlining D. ?Basel Accord

Business

The types of messages sent in downward communication might include

A. a focus group's feedback to management. B. an update on the current status from a foreign branch. C. employee expression of grievances. D. an employee's idea for improving a business process. E. instructions about an employee's job.

Business

Explain the role of self-leadership strategies in various athletic endeavors. What particular self-leadership strategies can impact success in athletics to varying degrees?

What will be an ideal response?

Business

What is the probability that the next chicken that joins him up on the deck is a rooster?

The gentleman farmer kept chickens for the eggs, the splash of color in the yard, and because he found their gentle clucking to relax him as he worked on his laptop on his deck. Their movements around his yard gave meaning to the term random walk — you literally could not predict their location from one minute to the next. His collection of birds is neatly summarized in this table. Breed Rooster Hen Rhode Island Red 2 8 Buff Orpington 0 5 Barred Rock 0 6 Australorp 0 6 Leghorn 1 2

Business