Redline Motors Has Adopted a Policy of Increasing the Annual

question 399

Multiple Choice

Redline Motors has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3.5% annually. The last dividend it paid was $1.21 a share. What will its dividend be 7 years from now?

• A) $1.44
• B) $1.49
• C) $1.54
• D) $1.56
• E) $1.58

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Definitions:

Offered For Sale

The act of making a product, asset, or property available to be purchased by others.

Securities And Exchange Commission

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Registration Statement

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Insider Trading

The purchase or sale of securities on the basis of information that has not been made available to the public.