Janice Is Evaluating a Stock That Currently Pays a Dividend

question 24

Multiple Choice

Janice is evaluating a stock that currently pays a dividend of $0.25 per share. She expects this level of dividend to continue indefinitely, and she has determined that 5% is the appropriate required return for the stock. What is the most she should pay for the stock?

• A) $1.25 per share
• B) $2.50 per share
• C) $5.00 per share
• D) $7.50 per share

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Definitions:

Satisfaction with Tasks

relates to the degree of contentment or fulfillment individuals feel regarding their assigned tasks or job responsibilities.

Work Setting

The physical and social environment in which an individual performs their job tasks, including aspects like workspace, culture, and policies.

Quality of Work Life

Quality of Work Life refers to the degree to which individuals are healthy, satisfied, and engaged in their jobs.

Human Experiences

The array of emotions, thoughts, and interactions that individuals undergo in their lives.