Blockbuster Inc

question 30

Multiple Choice

Blockbuster Inc.just paid a dividend of $2 per share.Dividends are expected to grow at a rate of -50% annually over the next three years.After that,it is expected that Blockbuster will cease paying dividends forever.What is the fair market price for a share of Blockbuster if shareholders require a return of 12%?

• A) $0
• B) $1.47
• C) $1.61
• D) $2.21
• E) $2.95

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Definitions:

Height And Weight

Measurements used to assess physical development, body composition, and overall health status.

Cerebrum

The largest, rounded part of the brain, responsible for learning, thought, memory, and language.

Coordination

The ability to use different parts of the body together smoothly and efficiently, or the organization of different elements in a complex system or activity.

Balance

The ability to maintain a stable and controlled body position while standing, moving, or performing tasks.