The Double Dip Co

question 102

Multiple Choice

The Double Dip Co. is expecting its ice cream sales to decline due to the increased interest in healthy eating. Thus, the company has announced that it will be reducing its annual dividend by 5%
A year for the next two years. After that, it will maintain a constant dividend of $1 a share. Last year,
The company paid $1.40 per share. What is this stock worth to you if you require a 9% rate of return?

• A) $10.86
• B) $11.11
• C) $11.64
• D) $12.98
• E) $14.23

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Definitions:

Ribosomal RNA

A type of RNA that combines with proteins to form ribosomes, which are the cellular structures that assemble proteins according to genetic instructions.

Nucleolus

The nucleolus is a densely packed region within the nucleus of a cell where ribosomal RNA is synthesized and assembled into ribosomes.

Circulating Red Blood Cells

Red blood cells that travel throughout the cardiovascular system, delivering oxygen to tissues and removing carbon dioxide.

Organelles

Specialized structures within a cell that perform distinct processes, like the nucleus, mitochondria, and chloroplasts.