Global Tek Plans on Increasing Its Annual Dividend by 15

question 59

Multiple Choice

Global Tek plans on increasing its annual dividend by 15 percent a year for the next four years and then decreasing the growth rate to 2.5 percent per year. The company just paid its annual dividend in the amount of $.20 per share. What is the current value of one share of this stock if the required rate of return is 17.4 percent?

• A) $1.82
• B) $2.18
• C) $2.03
• D) $2.71
• E) $3.05

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Definitions:

Cardiovascular Benefits

Cardiovascular benefits refer to the positive effects on the heart and blood vessels, such as improved heart function and reduced risk of heart disease, resulting from healthy lifestyle choices like exercise and a balanced diet.

Medical Assessment

A systematic evaluation of an individual's health status by a medical professional, often involving physical examination, medical history, and tests.

Early Diagnosis

The process of identifying a disease or condition at a preliminary stage, allowing for more effective treatment.

Effective Treatment

Therapeutic interventions or methods that have been scientifically proven to improve health outcomes or ameliorate symptoms.