A Stock Is Expected to Pay Dividends of $1

question 26

Multiple Choice

A stock is expected to pay dividends of $1.20 per share in Year 1 and $1.35 per share in Year 2.After that,the dividend is expected to increase by 2.5% annually.What is the current value of the stock at a discount rate of 14.5%?

• A) $11.29
• B) $10.87
• C) $12.07
• D) $13.39

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Definitions:

Free

Not under the control or in the power of another; able to act or be done as one wishes.

Enslaved

Made to work without pay and under threat of violence, deprived of freedom and rights; historically, referring primarily to African Americans in pre-Civil War United States.

First Great Awakening

A series of Christian revivals that swept Britain and its Thirteen Colonies in the Americas during the 1730s and 1740s, leaving a permanent impact on American Protestantism.

Evangelical Denominations

Groups within Christianity characterized by a strong emphasis on the authority of the Bible, the significance of Jesus' death and resurrection, and the imperative of evangelism and conversion.