What Would You Pay for a Share of ABC Corporation

question 145

Multiple Choice

What would you pay for a share of ABC Corporation stock today if the next dividend will be $2 per share, your required return on equity investments is 12%, and the stock is expected to be worth $110 one year from now?

• A) $95
• B) $100
• C) $110
• D) $115
• E) $120

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Definitions:

Gatekeeping Function

The process by which information is filtered for dissemination, whether by media outlets, social media algorithms, or organizational communications.

Same-sex Relations

Romantic or sexual relationships between people of the same gender.

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Subcultural groups or movements that reject the dominant societal values and norms, and propose alternative lifestyles or beliefs.

Dominant Values

The most highly regarded and influential beliefs or standards of a society or group, guiding behavior and societal norms.