A Share of Common Stock Has a Current Price of $82.50

question 73

Multiple Choice

A share of common stock has a current price of $82.50 and is expected to grow at a constant rate of 10 percent.If you require a 14 percent rate of return,what is the current dividend on this stock?

• A) $3.00
• B) $3.81
• C) $4.29
• D) $4.75
• E) $6.13

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Definitions:

Material Alteration

A significant change to a document that affects the rights and obligations of the parties involved.

Cisg

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a uniform framework for international commerce.

Merchant

An individual or company engaged in the buying and selling of goods, especially on a large scale or with international trade.

Article 2

Part of the Uniform Commercial Code that governs the sale of goods in the United States.