The Sister's Market Is Preparing to Pay Its fiRst Dividends

question 201

Multiple Choice

The Sister's Market is preparing to pay its first dividends. It is going to pay $.60, $1.10, and $1.50 a share over the next 3 years, respectively. After that, the company has stated that the annual
Dividend will be $1.98 per share indefinitely. What is this stock worth to you per share if you demand
A 9% rate of return?

• A) $18.22
• B) $18.65
• C) $19.08
• D) $19.62
• E) $20.11

---

Definitions:

Frequent Travel

Regular and often travel, either for work, leisure, or other purposes.

Interviews

A process in which an interviewer asks questions to a candidate to assess their suitability for a job, scholarship, or other opportunities.

Power Distance

A cultural dimension that reflects the degree to which individuals in a society accept and expect power to be distributed unequally.

Seniority

The concept of preferring individuals for certain privileges, positions, or responsibilities based on their length of service or experience in a particular organization or profession.