An Issue of Common Stock Has Just Paid a Dividend

question 100

Multiple Choice

An issue of common stock has just paid a dividend of $3.75.Its growth rate is 8%.What is its price if the market's rate of return is 16%?

• A) $25.01
• B) $46.88
• C) $50.63
• D) $54.38

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Definitions:

Lab Testing

The process of performing various tests in a controlled environment, usually a laboratory, to analyze substances, diagnose conditions, or conduct research.

DTaP

A vaccine that protects against diphtheria, tetanus, and pertussis (whooping cough), recommended for children for immunity against these infectious diseases.

MMR

A combined vaccine used to prevent measles, mumps, and rubella, diseases caused by viruses.

MCV4

A vaccine that protects against meningococcal diseases caused by Neisseria meningitidis serogroups A, C, W, and Y.