If a Company Pays a Dividend of $2 to Be

question 127

Multiple Choice

If a company pays a dividend of $2 to be received one year from now,dividends are expected to grow at a rate of 3 percent per year for the indefinite future,and the interest rate is 4 percent,the price of the company's stock should be ________ per share.

• A)$3.40
• B)$28.57
• C)$200.00
• D)$340.00

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Definitions:

Cognitive Restructuring

A therapeutic process aimed at identifying and altering negative and irrational thought patterns.

Resolves Conflict

Refers to the methods and processes involved in facilitating the peaceful ending of conflict and retribution.

Beneficial Aspects

Positive or advantageous elements or features of something.

Personality Disorder

A pervasive, persistent, inflexible, maladaptive pattern of behavior that deviates from expected cultural norms.