A Firm Has Been Losing Sales Due to Technological Obsolescence

question 118

Multiple Choice

A firm has been losing sales due to technological obsolescence. It projects growth for the future to be −2 percent. Its recent dividend was $2.00. What is the value of this stock when the required return is 9 percent?

• A) $28.00
• B) $29.14
• C) $17.82
• D) $15.52

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Definitions:

Disturbance Handler

A role in which a manager addresses unexpected crises or conflicts that disrupt the operations of the organization.

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, outlining terms and conditions of employment.

Technical Requirements

Specifications or criteria that must be met by a system, design, product, or service to fulfill its intended purpose.

Cultures

The shared values, beliefs, norms, and practices that define a group, organization, or society, shaping its members' behaviors and interactions.