Clonly Corp's Stock Pays a Dividend of $1

question 130

Multiple Choice

Clonly Corp's stock pays a dividend of $1.40 and is currently selling for $25, but has not grown in several years. Management feels that 10% growth is possible if the firm discontinues its dividend entirely. Harry owns 6,000 and wants to maintain a constant income stream. How many shares will he have to sell to make up for the first unpaid dividend if Clonly stops paying dividends and starts growing at 10%? Ignore transaction costs and taxes.

• A)305
• B)336
• C)240
• D)280

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The potential threats or uncertainties that are directly related to specific decisions or activities, impacting their success or outcome.

Deception

The act of misleading or deceiving someone by presenting false information or concealing the truth.

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Considerations based on principles of right and wrong behavior, guiding decisions and actions to align with moral values.

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