Hurricane Shutters Inc

question 37

Multiple Choice

Hurricane Shutters Inc.paid a dividend of $1.30 yesterday.The next dividend will be in one year and is expected to be $1.50.After that,dividends are expected to grow at a constant 15 percent forever.The discount rate for Hurricane Shutters Inc.is 25 percent.What should be the market price of the stock?

• A) $17.25
• B) $15.00
• C) $13.20
• D) $13.80
• E) $18.75

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Definitions:

Fordism

Is a method of industrial management based on assembly-line methods of producing inexpensive, uniform commodities in high volume.

McDonaldization

A term referring to the process by which the principles of fast food restaurants, such as efficiency, calculability, predictability, and control, are coming to dominate more sectors of society and everyday life.

Deskilling

The process by which skilled labor within an industry or economy is eliminated by the introduction of technologies or systems that reduce the need for skilled workers.

Economy

The system of production, distribution, and consumption of goods and services within a society.