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

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Definitions:

Function Prototype

A declaration of a function that specifies the function’s name, return type, and parameters, used in programming to inform the compiler about the function.

Malloc()

A function in C that dynamically allocates memory on the heap and returns a pointer to the allocated memory.

Malloc()

A function used in C and C++ programming languages to dynamically allocate memory.

Void Data Type

A special data type in programming that represents the absence of a value, often used as the return type for functions that do not return a value.