CJ Corp Is Expected to Pay a Dividend of $10

question 51

Multiple Choice

CJ Corp. is expected to pay a dividend of $10.00 per year indefinitely. If the appropriate rate of return on this stock is 15 percent per year, and the stock consistently goes ex-dividend 25 days before the dividend payment date, what will be the expected minimum price in light of the dividend payment logistics?

• A) $45.66
• B) $66.03
• C) $66.67
• D) $75.93

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Definitions:

Debunking

Looking behind the facades of everyday life.

Peter Berger

A sociologist known for his work in the sociology of knowledge, religion, and his contributions to sociological theory, notably in his book "The Social Construction of Reality."

Manifest Functions

The explicit and intended outcomes or consequences of social institutions and processes.

Empirical Science

A branch of science that relies on observation, experimentation, and evidence-based methodologies to acquire knowledge.