A Share of Common Stock Has an Expected Long-Run Constant

question 8

Multiple Choice

A share of common stock has an expected long-run constant growth rate of 10 percent and is currently priced at $66 per share.If investors require 15% rate of return,what was the last dividend paid on the stock?

• A) $2.20
• B) $1.95
• C) $6.15
• D) $3.00
• E) $3.30

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Definitions:

Potential Partners

entities or individuals considered for collaboration or engagement in a specific context or project.

Fixed-Interval

Refers to a schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Work Pattern

A regular manner in which work is done or organized, often characterized by specific routines or schedules.

Employees

Individuals who are hired by others to perform specific jobs in exchange for compensation.