An Issue of Common Stock Has Just Paid a Dividend

question 49

Multiple Choice

An issue of common stock has just paid a dividend of $4.50.The dividend growth rate is 10%.What is its price if the market's rate of return is 16%?

• A) $82.50
• B) $45.00
• C) $28.13
• D) $75.00

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Definitions:

Electroconvulsive Therapy

A psychiatric treatment where seizures are electrically induced in patients to provide relief from mental disorders.

Drug Therapy

The treatment of diseases and disorders through the administration of pharmaceuticals.

Antianxiety Drugs

Medications that are used to treat anxiety disorders and reduce symptoms of anxiety.

Drowsiness

A state of feeling abnormally sleepy or tired, often leading to a decreased level of consciousness and diminished ability to remain awake.