Versalife Inc

question 51

Multiple Choice

Versalife Inc.just paid a dividend of $1.32 on its common stock,and the next dividend will be paid one year from now.You require a return of 6%.What is the market price of this stock if there is no growth in annual dividends?

• A) $1.26
• B) $12.00
• C) $20.68
• D) $22.00

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Definitions:

Competitor

An entity that is in the same industry or market and vies for the same customers or resources.

Capital-Intensive

Describing industries or businesses that require a significant amount of capital investment to produce goods or services.