Horizon Power Is Expected to Grow at a Constant Rate

question 165

Multiple Choice

Horizon Power is expected to grow at a constant rate of 5% forever. The stock recently paid a $2.10 dividend per share.   What should Horizon sell for if similar stocks are returning 9%?

• A)​$55.13
• B)​$52.50
• C)​$23.33
• D)​$44.10

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Definitions:

Tennis Instruction

Coaching or teaching that focuses on techniques, strategies, and skills for playing the sport of tennis.

Reinforces

Strengthens or supports an idea, behavior, or material structure.

Operant Conditioning Principles

A method of learning that occurs through rewards and punishments for behavior, established by B.F. Skinner, emphasizing the effects of consequences on behavior.

Monitor

To observe and check the progress or quality of something over a period of time; or a device used for observing, checking, or keeping a continuous record of a process or quantity.