DT Motors Paid Its First Annual Dividend Yesterday in the Amount

question 44

Multiple Choice

DT Motors paid its first annual dividend yesterday in the amount of $.15 a share. The company plans to double the dividend in each of the next 3 years. Starting in Year 4, the firm plans to pay $1.50 a share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 13.8 percent?

• A) $11.02
• B) $10.77
• C) $8.92
• D) $10.26
• E) $11.79

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Definitions:

Enum Statement

A data type in programming languages that consists of a set of named integer constants, used to make a program easier to read and maintain.

Typedef Statements

In programming, statements that allow the definition of new names for existing data types.

Integer Values

Numeric values without decimal parts, used in programming and mathematics.

Enumeration Statement

In programming, an enumeration is a data type allowing variables to be assigned names to integral constants, making the code more readable.