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:

Recreation

Activities or experiences undertaken for enjoyment, relaxation, or leisure.

Nonverbal Messages

Communication conveyed through body movements, facial expressions, and posture rather than spoken words.

Verbal Message

Information or communication expressed through spoken words, as opposed to written form or non-verbal cues.

Hierarchy of Needs

A theoretical framework in psychology proposed by Abraham Maslow, outlining a sequence of human needs from basic to more complex.