ABC Imports Paid a $1

question 78

Multiple Choice

ABC Imports paid a $1.00 per share annual dividend last week. Dividends are expected to increase by 5% annually. What is one share of this stock worth to you today if the appropriate discount rate is 14%?

• A) $7.14
• B) $7.50
• C) $11.11
• D) $11.67
• E) $12.25

---

Definitions:

Xerox

A multinational corporation known for its photocopiers and printing technology, often used synonymously with photocopying.

Instrumental Stage

A developmental phase where an individual learns to engage in activities or behaviors for the sake of achieving a goal or obtaining a reward.

Moral Development

The process by which individuals learn to differentiate right from wrong, acquire virtues, and make ethical decisions as they grow and mature.

Defer

To postpone or delay an action or decision to a later time.