Felicity Trust Has a Dividend Cover Ratio of 5

question 13

Multiple Choice

Felicity Trust has a dividend cover ratio of 5.0 on net income of $6.3 million. The company's EPS is $2.10 and its cum dividend price is $22.50. What is the expected ex dividend price of the shares?

• A) $18.00
• B) $20.82
• C) $21.24
• D) $22.08
• E) 27.00

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Definitions:

Delay of Gratification

The capacity to resist the temptation for an immediate reward and wait for a later, often larger or more enduring reward.

Immediate Rewards

Benefits received right after completing an action, which often increase the likelihood of repeating the behavior.

Longer-term Goals

Objectives and outcomes that are planned to be achieved over an extended period, typically beyond a year.

Social Roles

Expected behaviors and responsibilities associated with particular positions within a society or group.