A Share of Stock Is Currently Selling for $31

question 32

Multiple Choice

A share of stock is currently selling for $31.80. If the anticipated constant growth rate for dividends is 6% and investors are seeking a 16% return, what is the dividend just paid?

• A)$1.91
• B)$3.18
• C)$3.00
• D)$5.09

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Definitions:

Attribute

A quality, characteristic, or feature of an individual, object, or concept that can be identified or used to describe it.

Paradigm

A unique collection of ideas or cognitive frameworks, encompassing theories, methodologies for research, assumptions, and criteria for determining valid contributions to a discipline.

Discipline

A field of study or branch of knowledge, as well as the practice of training to improve strength, skills, or behavior through rules and punishments.

Worldview

The fundamental cognitive orientation of an individual or society encompassing the entirety of the individual or society's knowledge and point of view.