A Firm Does Not Pay a Dividend

question 35

Multiple Choice

A firm does not pay a dividend. It is expected to pay its first dividend of $0.15 per share in three years. This dividend will grow at 9 percent indefinitely. Using a 10 percent discount rate, compute the value of this stock.

• A) $12.28
• B) $12.40
• C) $16.35
• D) $16.50

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Definitions:

Educational Difficulties

Challenges or barriers within learning environments that impede the academic progress or achievement of students.

Attention Problems

Difficulties in maintaining focus on tasks or activities, which can interfere with learning and daily functioning.

Disorganized-disoriented Attachment

A category of attachment characterized by inconsistent and erratic behaviors toward caregivers, often seen in situations of neglect or abuse.

Child Protection

Efforts and services designed to safeguard children from abuse, neglect, and exploitation, ensuring their health, well-being, and rights are maintained.