A Share of Common Stock Just Paid a Dividend of $1.00.If

question 55

Multiple Choice

A share of common stock just paid a dividend of $1.00.If the expected long-run growth rate for this stock is 5.4%,and if investors' required rate of return is 11.4%,what is the stock price?

• A)$16.28
• B)$16.70
• C)$17.13
• D)$17.57
• E)$18.01

---

Definitions:

Government-Insured Deposits

Refers to deposits in a financial institution that are protected by a government agency against the failure of that institution.

Unstated Premise

An implicit assumption in an argument that is not directly expressed but is required for the conclusion to follow.

Leprechauns

Mythical creatures in Irish folklore, often depicted as small, bearded men who partake in mischief.

Enthymeme

An argumentative technique that operates as a syllogism but omits one of its premises.