A Stock Is Expected to Pay a $5

question 18

Multiple Choice

A stock is expected to pay a $5.00 dividend per share. The growth rate is expected to be −2 percent. If investors demand 8 percent on this stock, what is the expected price of the stock five years from now?

• A) $54.68
• B) $45.20
• C) $41.06
• D) $53.12

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Definitions:

Corresponding Mood

A mood or emotional state that matches or is in harmony with a particular situation, environment, or context.

Happy Voice

An auditory signal characterized by a tone, pitch, and modulation that conveys feelings of happiness and positivity.

Normative Social Influence

The force exerted by peers that motivates us to alter our conduct to achieve their liking and acceptance.

Yawns

Involuntary actions that involve opening the mouth widely and inhaling deeply, often triggered by fatigue or boredom.