Zephyr Inc

question 40

Multiple Choice

Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the share will be worth $50 per share 5 years from now and you require a 15% rate of return for share investments of this type. What price should you be willing to pay for this share?

• A) $57.50
• B) $24.86
• C) $12.50
• D) $43.48

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Definitions:

Synthesis

The process of combining different ideas, findings, or materials to form a cohesive whole or new understanding.

Viewing Technology

Technologies and devices designed for the display of visual content, including televisions, monitors, and projectors.

Receive

To get or be given something.

Understand

The ability to comprehend or grasp the meaning, nature, or importance of something.