A Share of Common Stock Has a Current Price of $82.50

question 61

Multiple Choice

A share of common stock has a current price of $82.50 and is expected to grow at a constant rate of 10 percent. If you require a 14 percent rate of return, what is the current dividend on this stock?

• A) $2.81
• B) $3.00
• C) $4.29
• D) $4.75
• E) $6.13

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Definitions:

Simplest Units

The most basic elements or components from which something is formed.

Mind

The element of a person that enables them to be aware of the world and their experiences, to think, and to feel; the faculty of consciousness and thought.

Functionalism

A perspective in psychology and philosophy that considers mental life and behavior in terms of active adaptation to environmental challenges.

William James

A pioneering American psychologist and philosopher recognized for his contributions to pragmatism and functional psychology.