What Should Be the Price for a Common Stock Paying

question 19

Multiple Choice

What should be the price for a common stock paying $3.50 annually in dividends if the growth rate is zero and the discount rate is 8 percent?

• A)$22.86
• B)$28.00
• C)$42.00
• D)$43.75

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Definitions:

Divorced Daughters

Women who have experienced divorce and are the children in their parent's family, highlighting possible impacts on family dynamics.

Child Custody

Child custody is a legal term regarding guardianship which is used to describe the legal and practical relationship between a parent or guardian and a child in that person's care.

Parents

Mothers and fathers, or caregivers, who are responsible for raising and caring for their children.

Geographic Closeness

The physical proximity between places or entities, which can influence various social, economic, or environmental interactions.