Nu-Tek, Inc

question 44

Multiple Choice

Nu-Tek, Inc. is expecting a period of intense growth, so it has decided to retain more of its earnings to help finance that growth. As a result it is going to reduce its annual dividend by 10% a year for the
Next three years. After that it will maintain a constant dividend of $.70 a share. Last year, the
Company paid $1.80 per share. What is the market value of this stock if the required rate of return is
13%?

• A) $6.79
• B) $7.22
• C) $8.22
• D) $8.87
• E) $9.01

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Definitions:

Cardiac Muscle Cells

Specialized muscle cells found in the heart that are responsible for generating the rhythmic contractions that pump blood through the body.

Actin

A globular multi-functional protein that forms microfilaments, playing a key role in muscle contraction, cell motility, and the cell's structural framework.

AV Node

The atrioventricular node is an element of the heart's conduction system that regulates heart rate by decelerating the electrical impulse prior to its transfer from the atria to the ventricles.

Action Potential

Change in membrane potential in an excitable tissue that acts as an electric signal and is propagated in an all-or-none fashion.