The Lighthouse Co

question 34

Multiple Choice

The Lighthouse Co.is in a downsizing mode.The company paid a €2.50 annual dividend last year. The company has announced plans to lower the dividend by €.50 a year.Once the dividend Amount becomes zero, the company will cease all dividends permanently.The required rate of teturn is 16%.What is one share of this equity worth?

Definitions:

Headache

A common condition that involves pain or discomfort in the head, scalp, or neck.

Musculomembranous Tube

A term describing a structure composed of muscle and membrane, forming a tubular shape; not a specific anatomical term but might refer to various tubular structures in the body such as the digestive tract.

Vestibule

An entrance hall or other open area in a building used by the public, particularly the entrance hall in an anatomy context, such as the vestibule of the ear.

Uterus

A major female reproductive organ of most mammals, including humans, responsible for housing and nurturing the embryo/fetus during pregnancy.