JEN Corp Is Expected to Pay a Dividend of $2

question 5

Multiple Choice

JEN Corp. is expected to pay a dividend of $2.00 per year indefinitely. If the appropriate rate of return on this stock is 12 percent per year, and the stock consistently goes ex-dividend 25 days before the dividend payment date, what will be the expected minimum price in light of the dividend payment logistics?

• A) $1.14
• B) $16.54
• C) $16.67
• D) $18.52

---

Definitions:

Team Norms

Agreed-upon behaviors or standards within a team that guide the actions and interactions of its members.

Operational Norms

Established standards or expectations that dictate the behavior, procedures, and performance of members within an organization during daily operations.

Formal Versus Informal

A comparison between actions, communications, or structures that are official and structured (formal) against those that are casual, unstructured, or not officially sanctioned (informal).

Concept of Teams

The idea that individuals working collaboratively towards a common goal achieve better results than working in isolation.