Given That Dividends on a Share Are Expected to Remain

question 29

Multiple Choice

Given that dividends on a share are expected to remain indefinitely at $0.50 p.a.and that the required rate of return for the level of risk on such a share is 10% and the interest rate is 6%,the correct price for this share is:

• A)$8.33.
• B)$5.
• C)$3.
• D)none of the options given.

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Definitions:

Therapeutic Self-indulgence

Engaging in activities or practices that bring personal pleasure or relief as a way to improve one’s mental or emotional well-being.

Mourning Clothes

Attire traditionally worn during the period of mourning after the death of a loved one, often characterized by dark colors to symbolize grief.

Traditional Funeral

A funeral that adheres to established customs and practices within a culture, often including specific rituals, ceremonies, and mourning attire.

Immediate Disposition

The prompt handling or disposal of a body after death, which may include burial or cremation without formal funeral services.