ABC Corp Is Expected to Pay a Dividend of $5

question 17

Multiple Choice

ABC Corp. is expected to pay a dividend of $5.00 per year indefinitely. If the appropriate rate of return on this stock is 5 percent per year, and the stock consistently goes ex-dividend 45 days before the dividend payment date, what will be the expected maximum price in light of the dividend payment logistics?

• A) $98.83
• B) $100.00
• C) $104.37
• D) $123.29

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Definitions:

HR Forecasting

A method used in human resources to estimate future workforce needs to achieve the organization's objectives.

Organizational Goals

Objectives that an organization seeks to achieve, defining its purpose and, in essence, setting the direction for its activities and efforts.

Demand Requirements

The specific needs or quantities of products or services required by the market or a particular customer.

Qualitative Forecasting

The method of prediction based on non-quantifiable information such as expert opinions, industry trends, and qualitative comparisons.