A Share of Common Stock Has Just Paid a Dividend

question 24

Multiple Choice

A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 15 percent, and if investors require a 19 percent rate of return, what is the price of the stock?

• A) $57.50
• B) $62.25
• C) $71.86
• D) $64.00
• E) $44.92

---

Definitions:

Behavior Therapies

Psychotherapeutic interventions aimed at changing maladaptive behaviors through techniques such as conditioning and reinforcement.

Pharmacotherapy

The treatment of diseases, especially mental disorders, through the administration of drugs.

Cognitive-behavior Therapy

A psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, aimed at changing negative patterns to improve the way they feel.

Meta-analyses

Statistical techniques that combine the results of multiple scientific studies to obtain a more precise estimate of the effect size of a particular variable.