Firm X Will a Dividend of $10 Next Year and Its

question 11

Multiple Choice

Firm X will a dividend of $10 next year and its stock is expected to sell at $100 after the payment.Firm Y pays no dividend but its stock is expected to sell at $110.Dividends are taxed at 30% and capital gains are untaxed.If both stocks offer an after-tax return of 8%,what is the price of the two stocks?

• A) Price of X = $101.85; price of Y = $101.85
• B) Price of X = $99.07; price of Y = $101.85
• C) Price of X = $100; price of Y = $101.85
• D) Price of X = $99.07; price of Y = $100

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Definitions:

Synapse

The junction between two neurons, where neurotransmitters are released to facilitate communication by electrical or chemical means.

Purkinje Cells

Large neurons located in the cerebellum, crucial for motor coordination and cognitive functions.

Cerebellum

A brain structure beneath the occipital lobes that helps in refining movements, maintaining posture, and balance.

Interneuron

A type of neuron that connects sensory and motor neurons within the central nervous system, facilitating communication and reflexes.