A Common Stock Last Paid a Dividend of $1

question 189

Multiple Choice

A common stock last paid a dividend of $1.20 and it is expected to grow at 6% for the next 5 years.   If your required rate of return is 10%, what is the most you should pay today?

• A)​$32.71
• B)​$30.31
• C)​$40.15
• D)​$31.80

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Definitions:

Bill Becomes Law

The process through which a proposed legislation, after being passed by both legislative houses and approved by the president or an equivalent authority, becomes legally effective.

President's Signature

The act of a president signing a document, often legislation passed by Congress, which then becomes law or an executive order put into immediate effect.

Veto

The power of a president, governor, or other elected executive to refuse approval of legislation, thereby preventing its enactment into law.

Chief Executive

The highest-ranking executive officer in an organization or country, typically responsible for making significant corporate or governmental decisions.