1- How much is Majed companys retention ratio? *

a. 40.08% b. 31.63% c. 28.48% d. 71.29% e. None of the above

2- How much is the stock value without growth? *

a. $11.67 b. $12.84 c. $15.36 d. $18.08 e. None of the above

3- How much is the firms constant growth rate? *

a. 6% b. 7% c 8% d. 9% e. None of the above

4- How much is the stock's value? *

a. $46 b. $18.4 c. $12.32 d. $27.12 e. None of the above

5- Assume the firm's beta is 2.00, the risk free rate is 5% and the market return is 8%. What is the required rate of return on the firm's stock using CAPM. *

a. 14% b. 13% c. 12% d. 11% e. None of the above

Part II B Majed Company had the following figures for the year 2020: Dividend per share $1.47 ROE 19% Required return $2.15 Earnings per share (EPS)