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:

Charles Cooley

An American sociologist best known for his theory of the "Looking-Glass Self," which suggests that an individual's self-concept is influenced by how others perceive them.

Genie

In folklore, a supernatural being of Arabian origin, which is capable of granting wishes when summoned.

Social Isolation

A state where an individual lacks a sense of belonging, social engagement, and fulfilling relationships, often leading to negative health outcomes.

Feral Children

Refers to children who have lived in isolation from human contact from a very young age, and have no experience of human care, social behavior, or, crucially, of human language.