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:

MNCs

Multi-National Corporations, which are companies that operate in multiple countries beyond their home country.

Culture

A collection of common beliefs, objectives, behaviors, and values that defines a group, organization, or institution.

Host-country Complaints

Grievances or objections raised in the country where a foreign business operates, often related to the business's practices.

Multinational Corporations

Large companies that operate and provide goods or services in multiple countries beyond their home country's borders.