What Should Be the Current Price of a Stock If

question 65

Multiple Choice

What should be the current price of a stock if the expected dividend is $5,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:

Hydrogen Bonds

A fragile connection between two molecules caused by the electrostatic pull between a proton in one molecule and an atom with high electronegativity in the other.

DNA Polymerase

An enzyme that plays a critical role in DNA replication, helping to build new strands of DNA based on the template provided by the original strand.

Mutations

Changes in the DNA sequence of an organism's genome, which can affect genotype and potentially phenotype.

Semiconservative Replication

Describes the process of DNA replication in which one strand of each copy of a DNA molecule is new, and the other is a strand of the original DNA.