How Much Are You Willing to Pay for One Share

question 31

Multiple Choice

How much are you willing to pay for one share of stock if the company just paid an $.80 annual dividend,the dividends increase by 4% annually and you require an 8% rate of return?

• A) $19.23
• B) $20.00
• C) $20.40
• D) $20.80
• E) $21.63

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Definitions:

Nurture

The influence of environmental factors, such as upbringing and social experiences, on the development of an individual's traits and behaviors.

Nature

The inherent qualities or characteristics of a person or thing; or, the physical world collectively, including plants, animals, landscapes, and other features and products of the earth.

Philosophy

The study of the fundamental nature of knowledge, reality, and existence, especially when considered as an academic discipline.

Physiology

The branch of biology that studies the functions and mechanisms occurring within living organisms.