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.

---

Definitions:

Sale of Beef

The commercial transaction or trade of beef between sellers and buyers, governed by food safety and trade regulations.

Specific Performance

Specific performance is a legal remedy demanding the performance of a contract according to its precise terms when damages are not sufficient compensation.

United Nations Convention

A treaty or agreement under the auspices of the United Nations, establishing standards and norms for its member countries.

Unique Goods

Items that are distinct due to their design, quality, or rarity, often making them irreplaceable in transactions.