A Firm Is Expected to Pay a Dividend of $2

question 39

Multiple Choice

A firm is expected to pay a dividend of $2.00 next year and $3.75 the following year. Financial analysts believe the stock will be at their price target of $125.00 in two years. Compute the value of this stock with a required rate of return of 15 percent.

• A) $78.34
• B) $81.05
• C) $87.13
• D) $99.09

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Definitions:

Personality Change

Refers to alterations in an individual's characteristic patterns of thoughts, behaviors, and feelings over time.

Extraverted

Being outgoing, energetically social, enthusiastic, and inclined towards engaging with the external world and people.

Emotional Stability

A personality trait signifying the extent to which a person’s mood is unaffected by external events, often considered synonymous with low neuroticism.

Personality Change

Involves alteration in an individual's personality traits or overall personality structure, which can occur due to various life experiences or interventions.