What Should Be the Current Price of a Share of Stock

question 126

Multiple Choice

What should be the current price of a share of stock if a $5 dividend was just paid, the stock has a required return of 20 percent, and a constant dividend growth rate of 6 percent?

• A)$19.23
• B)$25.00
• C)$35.71
• D)$37.86

---

Definitions:

Success Rate

Success rate typically refers to the percentage of individuals who achieve a specific goal or desired outcome within a particular field or activity.

Low Versus High

Typically refers to the comparative analysis or distinction between two entities based on intensity, degree, or other measurable factors.

Transference-Focused Psychotherapy

This is a specific type of psychotherapy that aims to understand and address the unconscious transfer of emotions, desires, and expectations from a patient to the therapist based on past relationships.

Borderline Personality Disorder

A mental disorder characterized by unstable moods, behavior, and relationships.