The In-Tech Co

question 62

Multiple Choice

The In-Tech Co.just paid a dividend of $1 per share.Analysts expect its dividend to grow at 25% per year for the next three years and then 5% per year thereafter.If the required rate of return on the stock is 18%,what is the current value of the stock?

• A)$12.97
• B)$11.93
• C)$15.20
• D)$15.78

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Definitions:

Physical Separation

The state of being apart from others in terms of geographical distance or physical space.

Romantic Relationships

Intimate associations between individuals characterized by love, attachment, and emotional bonding.

Sudden Death

Abrupt and unplanned ending of a relationship.

Bilateral Dissolution

Ending of a relationship by mutual agreement of both parties.