The Common Stock of Tigre Tools Has a Required Return

question 48

Multiple Choice

The common stock of Tigre Tools has a required return of 14.5 percent and a growth rate of 3.6 percent. The last annual dividend was $1.50 a share. What is the current price of this stock?

• A) $13.76
• B) $13.92
• C) $14.26
• D) $14.87
• E) $15.30

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Definitions:

Worship God

The act of showing reverence and adoration for a deity, especially as part of a religious ritual.

Charitable

Relating to or characterized by the giving of money, goods, or help to those in need.

Praying

A religious practice involving communion with a deity or deities through invocations, confessions, or expressions of gratitude.

Protestant Ethic

The concept introduced by Max Weber suggesting that the Calvinist emphasis on hard work, thrift, and efficiency in one's worldly calling was a driving force behind the development of capitalism.