Exhibit 11.5 Use the Information Below for the Following Problem(S)

question 72

Multiple Choice

Exhibit 11.5
Use the Information Below for the Following Problem(S)
The National Motor Company's last dividend was $1.25 and the directors expect to maintain the historic 4 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 7 percent for the next three years and the stock will then reach $25.00 per share.
-Refer to Exhibit 11.5.How much should you be willing to pay for the stock if you feel that the 7 percent growth rate can be maintained indefinitely and you require a 16 percent return?

• A) $11.15
• B) $14.44
• C) $14.86
• D) $18.90
• E) $19.24

Understand the conditions under which the foreign tax credit and adoption credit can be claimed.

Recognize the impact of the Affordable Care Act on taxpayers.

Identify the income eligibility for the premium tax credit.

Understand the role of traits in leadership effectiveness.

---

Definitions:

Biochemical Changes

Alterations in the chemical processes and substances within living organisms, often referring to changes that affect mood, behavior, and cognition.

Brain Waves

Patterns of electrical activity in the brain, indicative of different states of consciousness, such as wakefulness or sleep.

Positron-Emission Tomography

A diagnostic imaging technique that uses radioactive substances to visualize and measure changes in metabolic processes.

Biochemical Activity

The chemical processes and reactions that occur within living organisms.