Exhibit 11.6 Use the Information Below for the Following Problem(S)

question 9

Multiple Choice

Exhibit 11.6
Use the Information Below for the Following Problem(S)
Consider a firm that has just paid a dividend of $2. An analyst expects dividends to grow at a rate of 8% per year for the next five years. After that dividends are expected to grow at a normal rate of 5% per year. Assume that the appropriate discount rate is 7%.
-Refer to Exhibit 11.6.The dividends for years 1,2,and 3 are

• A) $2, $2.08, $2.16
• B) $2, $2.05, $2.10
• C) $2.16, $2.24, $2.32
• D) $2.16, $2.33, $2.52
• E) $2.07, $2.14, $2.21

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Definitions:

Political Will

The commitment of political leaders to undertake and complete policies or measures that are necessary but potentially unpopular.

CSR Initiatives

Corporate Social Responsibility initiatives are actions taken by businesses to improve society or the environment beyond what is required by law.

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The process of capturing the attention and interest of customers through various marketing and communication strategies to create a meaningful interaction.