The In-Tech Co

question 3

Multiple Choice

The In-Tech Co. has just paid a dividend of $1 per share. The dividends are expected to grow at 25% per year for the next three years and at the rate of 5% per year thereafter. If the required rate of return on the stock is 18%(APR) , what is the current value of the stock?

• A) $12.97
• B) $11.93
• C) $15.20
• D) None of the above

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Definitions:

Equal Chance

The concept that every participant or element in a given situation has the same probability of being selected or occurring.

Psychologist Decide

involves the process by which psychologists make determinations or judgments based on psychological assessment, research, and clinical evidence.

Observations

The action or process of closely monitoring or noticing something or someone, often to gather data or come to a conclusion.

Hypotheses

Proposed explanations for a phenomenon, put forward as bases for further investigation, validation, or refutation.