The Next Dividend Is Expected to Be $1

question 293

Multiple Choice

The next dividend is expected to be $1.80, growth rate is 6%, and the required rate of return is 13%. What is the stock price?

• A) $35.81
• B) $30.83
• C) $25.71
• D) $20.13
• E) $15.51

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Definitions:

Constructed

Made, built, or put together using various parts or materials, often referring to buildings, roads, or other engineered structures.

Deposition

The geological process where sediments, soil, and rocks are added to a landform or landmass.

Low-gradient Stream

A stream that has a gentle slope, resulting in slower water movement and often a meandering course.

Point Bar

a depositional feature made of alluvium that accumulates on the inside bend of streams and rivers below the slip-off slope.