If Expected Dividends Grow at 8% and the Appropriate Discount

question 35

Multiple Choice

If expected dividends grow at 8% and the appropriate discount rate is 11%,what is the value of a share with an expected dividend of $2.50?

• A) $22.73
• B) $31.25
• C) $13.16
• D) $83.33

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Definitions:

Tension

A mental or emotional strain, often resulting from challenging or demanding circumstances.

Herzberg's Motivator

Factors identified by Frederick Herzberg that increase job satisfaction and motivation among employees, such as achievement, recognition, and personal growth.

Hygiene Model

A concept in organizational behavior that suggests certain factors in the workplace can prevent dissatisfaction but do not necessarily motivate employees.

Job Characteristics Model

A theory that proposes how job design influences motivation, job satisfaction, and productivity by impacting psychological states of employees.