Garcia Inc

question 4

Multiple Choice

Garcia Inc.has a current dividend of $3.00 per share (D₀ = $3.00) .Analysts expect that the dividend will grow at a rate of 25 percent a year for the next three years,and thereafter it will grow at a constant rate of 10 percent a year.The company's cost of equity capital is estimated to be 15 percent.What is the current stock price of Garcia Inc.?

• A) $75.00
• B) $88.55
• C) $95.42
• D) $103.25
• E) $110.00

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Definitions:

Labor Demand

The quantity of labor that employers are willing to hire at a given wage rate, reflecting the demand for labor in the labor market.

Firm's Product

A firm's product is the good or service produced or offered by a business entity.

Job Search

describes the process individuals undertake to find a new job or employment opportunity.

Matching Workers

The process of aligning the skills and preferences of job-seekers with the needs and demands of employers.