Southern Foods Just Paid an Annual Dividend of $1

question 102

Multiple Choice

Southern Foods just paid an annual dividend of $1.10 a share.Management estimates the dividend will increase by 10 percent a year for the next four years.After that,the annual dividend growth rate is estimated at 3.2 percent.The required rate of return is 12 percent.What is the value of this stock today?

• A) $12.55
• B) $13.00
• C) $14.54
• D) $15.81
• E) $16.21

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Definitions:

Reliability

The consistency of a measurement, test, or research findings across different occasions and contexts.

Validity

The extent to which a test, measurement, or research study accurately reflects or assesses the concept it is intended to measure.

Data Collection

The process of systematically gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes.

Communication Research

The scholarly study of communication processes and dynamics, utilizing various methodologies to understand and interpret communication behavior and effects.