A Share That Pays $20 in Dividends This Year with an Annual

question 46

Multiple Choice

A share that pays $20 in dividends this year with an annual growth rate of 3% forever for a required return of 5% has a valuation of:

• A)$257.
• B)$412.
• C)$420.
• D)$1,030.

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Definitions:

Herzberg's Two-factor Theory

A theory in organizational psychology that distinguishes between motivation factors, which encourage employees, and hygiene factors, which can cause dissatisfaction if absent but not necessarily motivate when present.

Satisfier

This term often refers to a factor that contributes to an individual's satisfaction, potentially leading to motivation or a positive state of well-being.

Advancement

Progress or development within a career or organization, often marked by promotions, increased responsibilities, or professional growth.

Goal-setting Theory

Goal-setting theory is a framework that emphasizes the importance of specific, challenging goals in contributing to enhanced and sustained employee performance.