Hupta Corporation -Using the Dividend Discount Model, Assuming Dividends Grow at 10

question 7

Multiple Choice

Hupta Corporation
$$\begin{array} { l r } & \mathbf { 2 0 0 5 } \\\text { Net income } & \$ 6,000 \\\text { Dividends } & \$ 2,000 \\\text { Total assets-12/31/05 } & \$ 50,000 \\\text { Total liabilities-12/31/05 }& \$ 20,000 \\\text { Number of shares outstanding } & 1,000 \\\text { Cost of equity } & 10 \%\end{array}$$
-Using the dividend discount model, assuming dividends grow at 10% in 2006 and at 5% thereafter, what is the value per share of Hupta at 12/31/05?

• A)$48.20
• B)$44.00
• C)$40.18
• D)$40.00

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Fossil Record

The collection of fossils, which are the preserved remains or traces of animals, plants, and other organisms from the remote past.

Cellular Respiration

The metabolic process by which cells produce energy, typically in the form of ATP, by oxidizing organic compounds, primarily glucose, using oxygen.

Electron Transport Chain

A sequence of electron carriers in the mitochondria that transfers electrons from donors to acceptors, releasing energy used to produce ATP.

NADH

Nicotinamide adenine dinucleotide (reduced form), a coenzyme involved in the electron transport chain, crucial for ATP production in cells.