The Red Bud Co

question 92

Multiple Choice

The Red Bud Co.just paid a dividend of $1.20 a share.The company announced today that it will continue to pay this constant dividend for the next three years after which time it will discontinue paying dividends permanently.What is one share of this stock worth today if the required rate of return is 8%?

• A)$3.09
• B)$3.15
• C)$3.23
• D)$3.44
• E)$3.60

---

Definitions:

Unemployed Workers

Individuals who are capable of working and are actively seeking work but are not currently employed.

Dine Out

The action of eating a meal outside one's home, typically in a restaurant.

Farmers' Market

A public market where farmers and often craftspeople sell their products directly to consumers.

Community Benefit

The positive impact on a community resulting from an organization's actions, beyond the scope of its direct business operations.