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:

Arbitrary

Stemming from a random selection or personal impulse instead of being guided by any logical rationale or structured approach.

Representation

The act of speaking or acting on behalf of someone or the depiction of something in art or literature.

Symbol

A symbol is a mark, sign, or word that indicates, signifies, or is understood as representing an idea, object, or relationship.