What Should Be the Current Price of a Share of Stock

question 13

Multiple Choice

What should be the current price of a share of stock if a $5 dividend was just paid,the stock has a required return of 20%,and a constant dividend growth rate of 6%?

• A) $19.23
• B) $25.00
• C) $35.71
• D) $37.86

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Definitions:

Performance Goals

Objectives aimed at demonstrating competence or achieving specific standards of excellence in tasks.

Attachment Style

Patterns of expectations, needs, and emotions one exhibits in interpersonal relationships, often developed in early childhood.

Anxious Attachment

A type of attachment characterized by intense worry about being abandoned and a desire to be close to others, often resulting in clingy or dependent behavior.

Romance

A feeling of excitement and mystery associated with love, often involving a romantic relationship between people.