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:

Written Rules

Formal guidelines and regulations that are documented and used to govern the actions and behaviors of members within an organization or society.

Equity

Equity involves fairness and justice in treatment, access, and opportunities, aiming to recognize and address disparities among different groups.

Voice

Refers to employees' ability to express concerns, grievances, or suggestions within their place of work.

Bureaucratic Model

A framework that outlines the structured and hierarchical organization of public administration and large organizations, focusing on strict rules, procedures, and a clear chain of command.