Using the One-Period Valuation Model,assuming a Year-End Dividend of $1

question 45

Multiple Choice

Using the one-period valuation model,assuming a year-end dividend of $1.00,an expected sales price of $100,and a required rate of return of 5%,the current price of the stock would be

• A)$110.00.
• B)$101.00.
• C)$100.00.
• D)$96.19.

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Definitions:

For Its Own Sake

Undertaking an activity for the pleasure and value derived directly from the activity itself, rather than for achieving an external goal.

Biologically Determined

Refers to traits, behaviors, or conditions that are influenced by genetic makeup rather than the environment.

Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli that is primarily genetically coded.

Homeostasis

The self-regulating process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.