Parcel Corporation Expects to Pay a Dividend of $5 Per

question 21

Multiple Choice

Parcel Corporation expects to pay a dividend of $5 per share next year, and the dividend payout ratio is 50 percent. If dividends are expected to grow at a constant rate of 8 percent forever, and the required rate of return on the stock is 13 percent, calculate the present value of growth opportunities.

• A)$100.00
• B)$76.92
• C)$23.08
• D)$69.54

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Definitions:

Childhood Cancer

encompasses the various types of cancer that occur in children, often presenting unique challenges due to the impact on growth, development, and treatment outcomes.

Discordant

Describes pairs in which one member is exposed to a certain factor or condition and the other is not, often used in studies to understand the impact of variables on outcomes.

Autosomal Dominant

A pattern of inheritance where a mutation in just one of the two copies of a gene is sufficient to cause a genetic disorder.

Huntington Disease

A genetic disorder that causes the progressive breakdown of nerve cells in the brain, leading to physical, cognitive, and emotional symptoms.