Exhibit 11.4 Use the Information Below for the Following Problem(S)

question 33

Multiple Choice

Exhibit 11.4
Use the Information Below for the Following Problem(S)
Davenport Corporation's last dividend was $2.70 and the directors expect to maintain the historic 3 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 5 percent for the next three years and the stock will then reach $25 per share.
-Refer to Exhibit 11.4.How much should you be willing to pay for the stock if you feel that the 5 percent growth rate can be maintained indefinitely and you require a 17 percent return?

• A) $22.16
• B) $19.28
• C) $21.32
• D) $23.63
• E) $25.46

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Definitions:

Coordination of Effort

The organized alignment and synchronization of activities and resources to achieve a common goal.

Division of Labor

The distribution of various segments of a production activity or job among different individuals to enhance productivity.

Social Glue

Metaphorical substance that holds and integrates a society or community together by shared values, beliefs, or interests.

Organizational Culture

The collection of values, expectations, and practices that guide and inform the actions of all team members in an organization.