Cyberdyne Systems Just Paid a Dividend of $1

question 33

Multiple Choice

Cyberdyne Systems 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 dividends are paid annually in perpetuity and grow at the rate of 2.62% per year forever?

• A) $15.31
• B) $15.71
• C) $22.58
• D) $39.05
• E) $40.08

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Definitions:

Division of Labor

The assignment of different tasks to different people or groups in an organization to increase efficiency and productivity.

Span of Control

The number of subordinates or units that a manager or leader can directly control or supervise effectively.

Horizontal Specialization

The division of work in an organization into distinct tasks, with each employee or department focusing on a specific subset of activities, promoting expertise in those functions.

Vertical Hierarchy

An organizational structure where authority and responsibility flow directly from the top down through various management levels, indicating clear lines of authority.