Exhibit 11.4 Use the Information Below for the Following Problem(S)

question 56

Multiple Choice

Exhibit 11.4
Use the Information Below for the Following Problem(S)
Davenport Corporation's last dividend was $2.70 and the directors expect to maintain the historic 3 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 5 percent for the next three years and the stock will then reach $25 per share.
-Refer to Exhibit 11.4.How much should you be willing to pay for the stock if you require a 17 percent return?

• A) $16.97
• B) $22.16
• C) $21.32
• D) $32.63
• E) $23.63

---

Definitions:

Safer Sex

Sexual behaviors that decrease the likelihood of contracting a sexually transmitted infection.

Monogamous Relationship

A romantic pairing in which both individuals agree to have a sexually exclusive relationship with each other.

Vaccination

The administration of a vaccine to stimulate an individual's immune system to develop adaptive immunity to a pathogen.

Brain Volume

The total space occupied by the brain, often measured in cubic centimeters, used as an index in various neurological and psychological studies.