Twin City Knitting (TCK) Pays a Current Dividend of $2

question 17

Multiple Choice

Twin City Knitting (TCK) pays a current dividend of $2.20, and dividends are expected to grow at a rate of 7% annually in the foreseeable future. The beta of TCK is 1.2. If the risk-free rate is 9.2% and the market risk premium is 6%, at what price would you expect TCK's common stock to sell?

• A) $14.35
• B) $33.63
• C) $23.40
• D) $25.04

---

Definitions:

Religiosity

The degree of religious observance, involvement, or belief in an individual's life.

Conscientiousness

Pertains to a personality trait characterized by diligence, carefulness, thoroughness, organization, and dependability.

Narrative Psychology

An approach in psychology focused on the study and use of personal storytelling and narratives to understand human experience and identity.

Life-Story Interviews

A qualitative research method used to capture detailed personal narratives that reflect an individual’s experiences, values, and personal identity over time.