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:

Amphetamines

A class of stimulant drugs used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy, and abused for their euphoric effects.

Teenagers

Refers to individuals typically between the ages of 13 and 19, a developmental stage characterized by physical, emotional, and social changes.

Smoking

The inhalation of smoke from burning tobacco or other substances, often leading to addiction and various health risks.

Caffeine

A stimulant compound found in coffee, tea, and other beverages that affects the central nervous system.