Ocean Co Has Paid a Dividend $2 Per Share Out of of Earnings

question 42

Multiple Choice

Ocean Co. has paid a dividend $2 per share out of earnings of $4 per share. If the book value per share is $25, what is the expected growth rate in dividends (g) ?

• A) 16%
• B) 12%
• C) 8%
• D) 4%

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Definitions:

Terminal Values

Fundamental beliefs or ideals that a person or organization considers to be of the utmost importance and that guide behavior and decision-making.

Example

A representative case or instance that illustrates a principle or concept.

Whistle-blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization by an insider.

Social Responsibility Continuum

A range that depicts the varying degrees to which businesses may engage in acts intended to benefit society, from minimal to extensive involvement.