Use the Following Information to Answer the Question(s)below

question 68

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors has a share price of $50.00.Its dividend was $2.50,and you expect Nielson Motors to raise its dividend by approximately 6% per year in perpetuity.
-If Nielson's equity cost of capital is 13%,then Nielson's expected share price is closest to:

• A)$19.23.
• B)$37.86.
• C)$35.71.
• D)$50.00.

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Definitions:

Nutrient Concentrations

The quantities of essential chemical elements or compounds, like nitrogen and phosphorus, available in an environment, crucial for the growth of organisms.

Algae Blooms

A rapid increase or accumulation in the population of algae in an aquatic system, often resulting in a visible discoloration of the water.

Bottled Water

Packaged drinking water sold in plastic or glass bottles.

Tap Water

Water that is supplied to a tap (faucet), typically treated and safe for drinking and other domestic uses.