Suzi Owns 100 Shares of AB Stock

question 92

Multiple Choice

Suzi owns 100 shares of AB stock. She expects to receive a $238 in dividends next year. She also expects the stock to sell for $46 a share one year from now. What is the intrinsic value of this stock if the dividend payout ratio is 40% and the discount rate is 13.5%?

• A) $38.19
• B) $42.63
• C) $40.53
• D)$45.77

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Definitions:

Communication

The process of conveying information and exchanging messages between people through speaking, writing, or other mediums.

Conflict Reduction

The process or methods used to decrease the level of conflict and tension between two or more parties, aiming to reach a peaceful resolution.

Simulation

The process of creating a model or representation of a complex situation or system to study its behavior under various scenarios.

Coalition

A coalition refers to an alliance among individuals, during which they cooperate in joint action, each in their own self-interest, joining forces together for a common cause.