Southern Foods Just Paid an Annual Dividend of $1

question 79

Multiple Choice

Southern Foods just paid an annual dividend of $1.10 a share. Management estimates the dividend will increase by 10 percent a year for the next 4 years. After that, the annual dividend growth rate is estimated at 3.2 percent. The required rate of return is 12 percent. What is the value of this stock today?

• A)$12.55
• B)$13.00
• C)$14.54
• D)$15.81
• E)$16.21

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Definitions:

Immoral/Unethical Acts

Behaviors or actions that are considered wrong or unacceptable based on societal norms or ethical standards.

Non-Deontology

A term incorrectly formed and likely refers to ethical theories not based on duty or rules, such as consequentialism or virtue ethics; however, the correct term does not exist in standard ethical discussions, so I'll mark it as NO.

Intrinsic Worth

It refers to the inherent value that something has in itself, irrespective of its utility to others.

Human Beings

Members of the species Homo sapiens; individuals who possess rationality and consciousness.