A Stock Is Expected to Pay a $1

question 67

Multiple Choice

A stock is expected to pay a $1.00 dividend per share. The growth rate is expected to be 4%. If investors demand 10% on this stock, what is the expected price of the stock 10 years from now?

• A) $24.68
• B) $22.17
• C) $25.00
• D) $26.93

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Definitions:

Tonic Neck Posture

A reflex observed in newborns, where turning the head to one side causes the arm on that side to straighten and the opposite arm to bend, often resembling a fencer's pose.

Months

Units of time in calendars that approximate the natural period related to the motion of the Moon; traditionally used to divide the year.

First And Last Name

Personal identifier comprising one's given name (first name) followed by one's family name or surname (last name).

Months

Units of time in calendars that constitute roughly one-twelfth of a year.