Goode Inc'S Stock Has a Required Rate of Return of 11

question 46

Multiple Choice

Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $25.00 per share. Goode's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D0?

• A) $0.95
• B) $1.05
• C) $1.16
• D) $1.27
• E) $1.40

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Definitions:

Direct Expense

Costs that can be directly traced to a specific product, service, or department.

Departmental Contribution

The amount of revenue generated by a specific department minus the direct costs associated with that department.

Standard Deviation

A measure of the dispersion or variability within a set of numeric values, indicating how spread out the values are from the mean.

Dispersion

Refers to the degree of variation or spread of data points in a dataset.