MsManners Catering (MMC) Has Paid a Constant $1

question 19

Multiple Choice

Ms.Manners Catering (MMC) has paid a constant $1.50 per share dividend to its common stockholders for the past 25 years.MMC expects to continue this policy for the next two years, and then begin to increase the dividend at a constant rate equal to 2 percent per year into perpetuity.Investors require a 12 percent rate of return to purchase MMC's common stock.What is the market value of MMC's common stock?

• A)$14.73
• B)$15.00
• C)$15.58
• D)$15.30
• E)$12.20

---

Definitions:

Biochemical Abnormalities

Irregularities in the chemical processes and substances within living organisms, which can be indicators or causes of diseases.

Schizophrenia

A chronic and severe mental disorder affecting how a person thinks, feels, and behaves, marked by delusions, hallucinations, and disordered thinking.

Schizophrenia

A psychological condition marked by altered cognition, feelings, speech, self-identity, and actions.

Symptom

A physical or psychological sign of a disorder.