Exhibit 11.7 Use the Information Below for the Following Problem(S)

question 66

Multiple Choice

Exhibit 11.7
Use the Information Below for the Following Problem(S)
Consider a firm that has just paid a dividend of $1.5. An analyst expects dividends to grow at a rate of 9% per year for the next three 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 11.7.The dividends for years 1,2,and 3 are

• A) $1.5, $2.0, $2.05
• B) $1.64, $1.78, $1.94
• C) $1.64, $1.94, $2.24
• D) $1.5, $2.40, $3.30
• E) $2.07, $2.14, $2.21

---

Definitions:

Sensate Culture

A societal framework that prioritizes sensory experience and pleasure over intellectual or spiritual considerations.

Sorokin

Pitirim Sorokin was a Russian-American sociologist known for his contributions to social cycles theory and for founding the sociology department at Harvard University.

Cyclical Theory

A theory that suggests historical events and stages of society repeat themselves in cycles due to underlying patterns or forces.

Social System

A social system is an interdependent set of cultural and structural elements that interact and influence human behaviour and relationships in a society.