A Company's Dividend Last Year Was $3

question 62

Multiple Choice

A company's dividend last year was $3.00.Dividends are expected to grow indefinitely at 7% and the required rate of return for the stock is 13%.What is the value of the stock today?

• A) $2.83
• B) $23.08
• C) $24.69
• D) $50.00
• E) $53.50

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Definitions:

Blindness

is the condition of lacking visual perception due to physiological or neurological factors.

Sugar Low

A condition characterized by a below-normal level of blood glucose, often leading to symptoms like dizziness, sweating, and confusion.

Slurred Speech

An impairment in speech articulation evidenced by speaking with a disjointed or unclear pronunciation, often indicative of neurological issues or intoxication.