Beaksley,Inc

question 43

Multiple Choice

Beaksley,Inc. is a very cyclical type of business which is reflected in its dividend policy. The firm pays a $2.00 a share dividend every other year. The last dividend was paid last year. Five years from now,the company is repurchasing all of the outstanding shares at a price of $50 a share. At an 8% rate of return,what is this stock worth today?

• A) $34.03
• B) $37.21
• C) $43.78
• D) $48.09
• E) $53.18

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Definitions:

Income Equality

The equal distribution of income among all members of society, reducing the gap between the richest and poorest.

Social Security Benefits

Payments made to qualified retirees and disabled people, and to their spouses, children, and survivors, funded by payroll taxes.

Medicaid

A government-funded program in the United States that provides health coverage to eligible low-income adults, children, pregnant women, elderly adults, and people with disabilities.

Conservative Theory

In economics, often refers to theories that prioritize free market principles, limited government intervention, and fiscal conservatism.