ABC Company has been growing at a 10% rate, and it just paid a dividend of Do= $3.00. Due to a new product, ABC expects to achieve a dramatic increase in its short-run growth rate, to 20% annually for the next 2 years
After this time growth is expected to return to the long-run constant rate of 10%. The company's beta is 2.0, the required return on an average stock is 11%, and the risk free rate is 7%. What should the dividend yield (D1/Po) be today? (Round to the nearest whole percent.)
A) 4%
B) 5%
C) 10%
D) 8%
E) 2%
B
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The tendency of Americans to look people in the eye contrasts with the tendency of the British to keep looking away while conversing. Such differences are categorized as ________
A) oculesics B) proxemics C) paralanguage D) object language
When two companies' profits tend to move in opposite directions in response to changing economic factors, the companies are likely
A) negatively correlated. B) not correlated. C) unrelated in industry sector. D) in different regions of the world.