Ground Chuck Processing Just Paid Its Annual Dividend of $1

question 79

Multiple Choice

Ground Chuck Processing just paid its annual dividend of $1.25 per share.The firm recently announced that all future dividends will be increased by 3 percent annually.What is one share of this stock worth to you if you require a rate of return of 11.5 percent?

• A)$14.89
• B)$15.92
• C)$15.15
• D)$13.52
• E)$15.05

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Definitions:

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Expiration Date

The specified date on which the options contract or other financial instrument becomes void and ceases to exist.

Marking-To-Market

The process of updating the value of an asset or liability to reflect its current market value rather than its book value.

Troy Ounce

A unit of measure for precious metals that is approximately 31.1035 grams, traditionally used in the pricing and trading of these commodities.