The Florida Diving Company had a return on equity (ROE) of 5% this past year. Dividends were paid of $10,000, and the company's net income was $50,000. If the company has 100,000 shares outstanding with a current market price of $20 per share, what is the required rate of return? a. None of these is right. b. 4.52%. c. 3.60%. d. 6.60%. e. 10.00%.
The Florida Diving Company had a return on equity (ROE) of 5% this past year. Dividends were paid of $10,000, and the company's net income was $50,000. If the company has 100,000 shares outstanding with a current market price of $20 per share, what is the required rate of return? a. None of these is right. b. 4.52%. c. 3.60%. d. 6.60%. e. 10.00%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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