A Stock Is Expected to Pay a $1

question 40

Multiple Choice

A stock is expected to pay a $1.00 dividend per share. The growth rate is expected to be 4 percent. If investors demand 10 percent on this stock, what is the expected price of the stock 10 years from now?

• A) $24.68
• B) $22.17
• C) $25.00
• D) $26.93

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Definitions:

Transference

In psychoanalysis, the patient’s transfer to the analyst of emotions linked with other relationships (such as love or hatred for a parent).

Psychological Conflicts

Inner struggles resulting from the clash of opposing needs, desires, or emotions.

Expression

The process of making one's thoughts or feelings known, including through language, art, or music.

Transference

In psychoanalysis, the redirection of feelings and desires, especially those unconsciously retained from childhood, toward a new object, often the therapist.