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

question 20

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 future price of the stock in year 3 is

• A) $81.75
• B) $84.81
• C) $92.56
• D) $101.85
• E) $111.16

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Definitions:

Symptoms

Symptoms are the signs or manifestations of a disease or condition, observed by an individual, indicating the presence of an ailment.

Cognitive-Behavioral Therapies

A group of psychotherapies that treat problems by modifying dysfunctional emotions, behaviors, and thoughts.

Criticisms

Evaluations or judgments of someone or something as lacking or failing in some respect.

Symptom

Any indication or sign of a condition, disorder, or disease, observed by a person or their healthcare provider.