Use the Information for the Question(s)below

question 74

Multiple Choice

Use the information for the question(s) below.
Defenestration Industries plans to pay a $4.00 dividend this year and you expect that the firm's earnings are on track to grow at 5% per year for the foreseeable future.Defenestration's equity cost of capital is 13%.
-Assuming that Defenestration's dividend payout rate and expected growth rate remain constant,and Defenestration does not issue or repurchase shares,then Defenestration's stock price is closest to:

• A)$50.00.
• B)$32.30.
• C)$22.25.
• D)$30.75.

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Definitions:

Superior Trial Court

A higher-level court that hears both criminal and civil cases, typically with the authority to hear appeals from lower courts.

Province

A territorial unit of governance within a country, often with its own set of laws and government.

Cross-Examination

A stage in a court trial where an opposing attorney has the opportunity to question a witness.

Direct Examination

The questioning of a witness by the party who called the witness to testify in a court of law, focusing on the case's facts without leading questions.