A Stock Sells for $12

question 97

Multiple Choice

A stock sells for $12.36 a share and has a required return of 9 percent.Dividends are paid annually and increase at a constant 3 percent per year.What is the amount of the last dividend paid?

• A) $0.46
• B) $0.50
• C) $0.59
• D) $0.63
• E) $0.72

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Definitions:

Partnership Interest

A partner’s ownership interest in a partnership which embodies the partner’s transferable interest and the partner’s management and other rights.

Shareholder Interest

Refers to the stakes or investments that shareholders have in a company, encompassing financial gains, company governance, and decision-making influence.

Creditors Of Partnership

Individuals or entities that a partnership owes money to.

Sole Owners

Individuals or entities that are the exclusive legal proprietors of a business, property, or any asset.