A Stock Has an Annual Dividend of $10

question 122

Multiple Choice

A stock has an annual dividend of $10.00 and it is expected not to grow. It is believed the stock will sell for $100 one year from now, and an investor has a discount (interest) rate of 6% (0.06) . The dividend discount model predicts the stock's current price should be:

• A) $94.67
• B) $116.00
• C) $103.77
• D) $106.60

---

Definitions:

Order Visibility

The ability to track and view the status of orders at every stage of the supply chain, from initial placement to final delivery.

Distribution Network

The systematic arrangement of distribution centers, transportation routes, and hubs used to distribute products to customers.

Supply Chain Drivers

The key factors that directly impact the performance and efficiency of the supply chain, including facilities, inventory, transportation, information, sourcing, and pricing.

Cost

The amount of money or resources expended to acquire an asset, produce a product, or deliver a service.