**Answer: The market rate of return is 7.45%**

We follow these steps to find the answer.

Here we can interpret the term 'market rate of return' as the required rate of return on the stock. We represent this as

The current market price of stock (P₀), whose dividends are expected to grow for a constant rate is given by:

where

D = Upcoming dividend

k_{e} = required rate of return on the stock

g = constant growth rate of dividends.

Plugging in the values from the question in the formula above we get,

**Answer:**

The answer to the question is A

**Answer:**

Subject: Request List: Approved Reference Books for Space Exploration Article

Dear Mr. Jackson,

I am writing to request you to email me the list of approved reference books for the space exploration article. We had discussed some tentative suggestions in our previous meeting. We are a bit behind schedule with writing the article. The reference book list will be a great help to us. Thank you for your time in considering this request.

Sincerely Yours,

Janice Collins

Head Writer

Star Communications

2563 Maple Road

Sunny City, CA 4523

Tel: (123) 456-7890

**THIS IS THE EXAMPLE ANSWER!**

**Answer:**

A higher gearing ratio indicates that a company has a higher degree of financial leverage and is more susceptible to downturns in the economy and the business cycle. This is because companies that have higher leverage have higher amounts of debt compared to shareholders' equity.