Given the following information, which of the following firms has the lowest required rate of return? Group of answer choices a. Schuldig Co. has a current share price of $5.50, an expected dividend of $1.05 per share, and a negative growth rate of 10%.
b. Iccarus Inc. has a current share price of $275.80, an expected dividend of $3.10, and a growth rate of 14%
c. Simpson, LLC. has a current share price of 94.30, an expected dividend of $3.00, and a growth rate of 10%.
d. I don't know that!

Shuldig Co. has the lowest required rate of return

Explanation:

Shuldig Co.

$5.50 = $1.05 / (Re + 10%)

Re = 19% - 10% = 9%

Iccarus Inc.

$275.80 = $3.10 / (Re - 14%)

Re = 1.1% + 14% = 15.1%

Simpson LLC.

$94.30 = $3.00 / (Re - 10%)

Re = 3.2% + 10% = 13.2%

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

answer; ///decision making under risk;