A Stock Sells for $12

question 20

Multiple Choice

A stock sells for $12.36 a share and has a required return of 9 percent. Dividends are paid annually and increase at a constant 3 percent per year. What is the amount of the last dividend paid?

• A)$.46
• B)$.50
• C)$.59
• D)$.63
• E)$.72

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Definitions:

Internal Rewards

Psychological benefits, such as satisfaction or joy, that individuals receive from performing well or achieving a personal goal, independent of external recognition.

External Rewards

Incentives or benefits provided by an external source, such as money or praise, to motivate behavior.

John Rawls

A philosopher known for his work in political philosophy and his theory of justice as fairness, outlining principles of justice to structure society.