If a Company Pays a Dividend of $5 to Be

question 65

Multiple Choice

If a company pays a dividend of $5 to be received one year from now,dividends are expected to grow at a rate of 8 percent per year for the indefinite future,and the interest rate is 14 percent,the price of the company's stock should be ________ per share.

• A)$8.00
• B)$83.33
• C)$227.27
• D)$610.00

---

Definitions:

Enabling

Providing the means or opportunity for someone to achieve something or to facilitate a process.

Resistance to Cultural Change

The reluctance or opposition faced when attempting to alter the established norms, values, and behaviors within a group or organization.

Cultural Change

The transformation of the culture of a society or organization, including its values, norms, and behaviors.

Socialization Processes

The methods through which individuals learn and adopt the norms, values, and behaviors that are necessary for functioning within a society or a specific group.