If Next Year's Dividend Is Forecast to Be $5

question 110

Multiple Choice

If next year's dividend is forecast to be $5.00, the constant growth rate is 4 percent, and the discount rate is 16 percent, then the current stock price should be:

• A)$31.25
• B)$40.00
• C)$41.67
• D)$43.33

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Definitions:

Japanese Internment

The forced relocation and incarceration of Japanese Americans and Japanese nationals in camps during World War II by the United States government.

Loyalty Oaths

Pledges or statements affirming allegiance to a government or country, often required by employers, especially in periods of political scrutiny or conflict.

Japanese-American Internment

Policy adopted by the Roosevelt administration in 1942 under which 110,000 persons of Japanese descent, most of them American citizens, were removed from the West Coast and forced to spend most of World War II in internment camps; it was the largest violation of American civil liberties in the twentieth century.

Double-V Campaign

The Double-V Campaign was an initiative during World War II by African Americans to fight for victory against fascism abroad and racial discrimination at home.