Nu-Tek,Inc

question 23

Multiple Choice

Nu-Tek,Inc.is expecting a period of intense growth,so it has decided to reduce its annual dividend by 10 percent a year for the next 3 years.After that,it will maintain a constant dividend of $1.90 a share.Last year,the annual dividend was $2.70 a share.What is the market value of this stock if the required rate of return is 15 percent?

• A)$13.86
• B)$13.39
• C)$14.88
• D)$14.23
• E)$14.15

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Definitions:

Colour Vision

The ability of the eye to differentiate objects based on the wavelengths of the light they reflect, emit, or transmit.

Peripheral Vision

The part of vision that occurs outside the very center of gaze, allowing one to see objects not directly in line of sight.

Bright Illumination

Strong or intense light that significantly increases visibility in an environment.

Colour Vision

The capability of an organism's visual system to distinguish objects based on the wavelengths (or frequencies) of the light they reflect, emit, or transmit.