PQR Corp Is Expected to Pay a Dividend of $1

question 63

Multiple Choice

PQR Corp. is expected to pay a dividend of $1.50 per year indefinitely. If the appropriate rate of return on this stock is 8 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) 12.84
• B) $18.65
• C) $18.75
• D) $20.09

Understand the role of corporate vision in achieving a sustainable competitive advantage.

Assess the role and importance of flexibility in global leadership.

Recognize the steps employees can take towards obtaining international assignments to develop global leadership competencies.

Understand the purpose and use of the work sheet in accounting processes.

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Definitions:

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.

Unique Risk

Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also called firm-specific risk, nonsystematic risk, or diversifiable risk.

Diversification

Diversification is an investment strategy that aims to reduce risk by allocating investments among various financial instruments, industries, geographic locations, or other categories.

Portfolio

A collection of investments, such as stocks, bonds, commodities, and real estate, held by an individual or an institution.