An Issue of Common Stock Is Expected to Pay a Dividend

question 41

Multiple Choice

An issue of common stock is expected to pay a dividend of $4.80 at the end of the year. Its growth rate is equal to 8%. If the required rate of return is 13%, what is its current price?

• A) $103.68
• B) $36.92
• C) $96.00
• D) none of the other answers are correct

---

Definitions:

Project Allegiance

Loyalty or commitment to the goals and success of a specific project.

New Career Paradigm

A contemporary approach to careers characterized by flexibility, self-employment, and changing roles rather than the traditional stable, lifelong positions within a single organization.

Project Team

A group of individuals assembled to work collaboratively on a specific project, pooling their skills and resources to achieve shared objectives.

Corporate Policy

Guidelines and rules set by a company to dictate behavior and decision-making processes within the corporate structure.