What Price Would You Expect to Pay for a Stock

question 81

Multiple Choice

What price would you expect to pay for a stock with 13 percent required rate of return, 4 percent rate of dividend growth, and an annual dividend of $2.50 which will be paid tomorrow?

• A)$27.78
• B)$30.28
• C)$31.10
• D)$31.39

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Definitions:

White Blood Cells

Defense cells in the immune system tasked with safeguarding the body against infections and foreign entities.

Spleen

An organ located under the ribcage in the upper left part of the abdomen, involved in filtering blood, recycling red blood cells, and immune response.

Palatine Tonsils

A pair of soft tissue masses located at the rear of the throat, which are part of the immune system and help to defend the body from infection.

Thymus Gland

An organ in the upper chest that develops T-cells for the immune system; it gradually shrinks after puberty.