Macaroni Inc

question 54

Multiple Choice

Macaroni Inc.announced that it would pay the following dividends over the next five years: $0.50, $0.75, $1.50, $3, and $4.Afterwards, dividends will decline at a rate of 3% per year indefinitely.What is the firm's current share price if the required rate of return is 13%?

• A)$30.33
• B)$24.25
• C)$19.25
• D)$17.73

---

Definitions:

Type A Behavior

A personality disposition characterized by competitiveness, impatience, aggressiveness, and a sense of urgency.

Heart Attack

A medical emergency characterized by the sudden blockage of blood flow to the heart muscle, often resulting in chest pain and potentially fatal if not treated promptly.

Impatient

The feeling of irritation or distress over having to wait, often leading to a desire for immediate action or results.

Commuting

The process of traveling between one's home and place of work or study.