Master Technicians Just Announced That It Is Increasing Its Annual

question 266

Multiple Choice

Master Technicians just announced that it is increasing its annual dividend to $4 and establishing a policy whereby the dividend will increase by 2% annually thereafter. How much will one share of this stock be worth 10 years from now if the required rate of return is 14%?

• A) $39.83
• B) $40.63
• C) $40.67
• D) $41.44
• E) $41.47

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