Question

Irish Cereals plc has an expected ROE of 15%. If it pays out 30% of it...

Irish Cereals plc has an expected ROE of 15%. If it pays out 30% of it earnings as dividends, its dividend growth rate will be _____.

A. 4.5%

B. 10.5%

C. 15.0%

D. 30.0%

West Coast Tech Inc. has expected earnings of $3.00 per share for next year. The firm's ROE is 18% and its earnings retention ratio is 60%. If the firm's market capitalization rate is 12%, what is the value of the firm excluding any growth opportunities?

A. $25.00

B. $50.00

C. $83.33

D. $208

The maximum loss a buyer of a stock call option can suffer is the _________.

A. call premium

B. stock price

C. stock price minus the value of the call

D. strike price minus the stock price

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